Lift cotton export ban, remove export duty:Modi writes PM

Gujarat Chief Minister on Thursday wrote a letter to the Prime Minister of India and demanded to lift the ban on cotton export, and also to remove export duty on cotton immediately.

In his letter to PM, Gujarat Chief Minister said that lakhs of cotton growing farmers were seriously affected in Gujarat due to export ban imposed by the central government. This has caused great financial losses to the farmers of Gujarat, a leading cotton growing state which contributes 33% of India’s total cotton and 50% of export.

“The farmers of Gujarat have produced cotton even after adverse monsoon and growing prices of agricultural inputs. But there is no management of support prices for cotton crop. The centre is making a situation where farmers will have no option but to fight for their rights.”

“Cotton is the most important cash crop in Gujarat. It has improved rural economy in the state. Lakhs of farmers have become prosperous due to cotton farming. Thanks to cotton exported to China, Thailand, Indonesia, Turkey etc countries, the farmers of Gujarat earn good price of their produce. The government of India first increased export duty to Rs 2500 per tonne on 9 April 2010 and then on 19th April 2010 it decided to ban export of cotton. This is most unfortunate decision which will pus Gujarat’s lakhs of farmers to worst economic losses.”

“Steps like ban on cotton export and hike in cotton export duty are taken to influential industrial lobby of cotton yarn textile. The central government is not only harming cotton growing farmers but this such steps will in long term also adversely affect cotton based industries and people employed there. The decision of central government is harmful in long-term for economy of Gujarat and the country.”

The Chief Minister said that the supply of cotton to the industries could be done in competitive fashion through domestic resources or international markets. But to push farmers to worst condition is not valid.