BJP MLA in Gujarat has threatened state-wide protest against the central government, if ban on cotton export is imposed.

According to BJP’s Jasdan MLA Dr.Bharat Boghra, “There is a process going on to impose ban on cotton export. I would like to warn the central government that if ban is imposed on cotton export, the farmers will get low prices and we will not tolerate such situation. Central government can not impose ban just to appease few south India based textile mills”.

Boghra also said, “the farmers spend huge amount on seeds, pesticides and laborers. It is their right to get good prices. If ban is imposed, farmers will fight the decision in streets across the state”.

According to recent reports published in section of media, the central government is in process to take a decision on clamping a ban on cotton exports after assessing the domestic demand and supply situation. “We are closely watching the price scenario in cotton. Any decision to impose a ban on exports will depend on the domestic supply situation,” Union Textile Secretary Rita Menon has reportedly said.

The issue on cotton export ban came in to limelight first when the Southern India Mills’ Association demanded a blanket ban on cotton exports, saying overseas sales were jacking up local rates. A Sima delegation met Union textiles minister Dayanidhi Maran in New Delhi on November 11 to make a representation on these issues.Traders said despite good crop arrivals, prices of leading varieties had shot up 8% primarily due to a surge in export demand. Cotton exports in October, including those of the most sought-after Gujarat Sankar6 variety, surged 300% to about 116,000 bales from a month earlier, according to a Cotton Association of India official. The Confederation of Indian Textile Industry ( CITI) has also renewed its demand for suspension of export.

“The actual cotton production would slip to 26 million bales (one bale is 165 kg) this year, as against 29 million bales produced during the last season due to drought and floods in all major cotton-growing states. Of the production during 2009-10 season, only around 16 million bales are expected to be of above average quality. If this cotton is exported as against the domestic requirement of 24 million bales, the Indian textile industry would lose its competitive edge in the global market,” R K Agarwal, member of Sima, and chairman of AP Spinning Mills Association, told reporters.

Inferior quality cotton of 10 million bales during the present season would increase the cost of production by almost 10 per cent.

This is when the industry is already spending over 10 per cent of its cost on transportation for bringing the cotton from upcountry centres to consuming destinations as against 5-6 per cent spent by competing countries like China and Pakistan, he added.

Agarwal said global cotton traders, who had established themselves in cotton-growing under-developed countries in Africa, have made inroads into the Indian markets taking advantage of the removal of cotton textiles from the Essential Commodities Act from December 24, 2006.

“As a result, the Indian textile mills are paying a 30-40 per cent higher price for Indian cotton.”

“We are asking the central government to announce a proactive cotton policy and create a level-playing field to enable the Indian textile industry to have a healthy competition with competing countries like China, Pakistan, Thailand, Sri Lanka, Bangladesh and Indonesia,” Agarwal said.

The Indian textile industry made an investment of over Rs 160,000 crore during the last decade for technology upgrade and capacity addition. It presently provides direct and indirect jobs to 5 million across the country.