New Delhi, 29 April 2012

Central government may allow fresh cotton exports on Monday. Commerce and Textile minister Anand Sharma met Finance Minister Pranab Mukherjee in this regard in Delhi on Friday.

On Monday Finance minister Pranab Mukherjee, agriculture minister Sharad Pawar and commerce & textiles minister Anand Sharma will meet on this issue.

“The three of us will meet tomorrow to re-assess the situation based on fresh numbers furnished by the Cotton Advisory Board,” Anand Sharma said at a press conference today.

Both the agriculture ministry and the Cotton Advisory Board (CAB) have revised upwards the cotton production estimates for cotton year ending September 30 to about 35.2 million bales (170 kg each) and 34.7 million bales respectively, according to an industry official. The CAB had earlier estimated cotton production for the year at 34.million bales. The CAB is also said to have revised downwards the domestic consumption data for the year giving more room for allowing exports.

The commerce ministry had banned cotton exports on March 5, apprehending a shortfall in domestic cotton supplies, but lifted the ban on March 12 allowing exports of pending contracts after strong objection from agriculture minister Sharad Pawar and cotton-growing states of Gujarat and Maharashtra.

PTI report says PM will take a decision on Monday

Amid the ongoing controversy over export of cotton, Prime Minister Manmohan Singh has called a meeting tomorrow to take a call on allowing shipment of natural fibre as has been advocated by Agriculture Minister Sharad Pawar and Gujarat Chief Minister Narendra Modi.

Ahead of the meeting with the Prime Minister, Finance Minister Pranab Mukherjee will hold discussions with Pawar and Commerce and Textiles Minister Anand Sharma.

There are indications that the government may allow export of additional 20 lakh bales of cotton (one bale is 170 kg) during the current crop season (October-September 2011-12). Of about 115 lakh bales registered so far this season, the country has exported 106 lakh bales of cotton.

In view of the controversy, Sharma met Mukherjee twice in the last two days in this regard.

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