Cotton export ban to be lifted, notification tomorrow, strike to continue untill there’s total and not partial relief from export ban

New Delhi, 11 March, 2012

The central government has taken a decision to lift ban on cotton export, said Gujarat Congress President Arjun Modhwadia in Delhi adding that a formal notification in this regard will be issued on Monday, as today the govt offices are closed due to Sunday.

“Shri Ahmed Patel led delegation today met union minister Anand Sharma and KV Thomas on cotton export ban issue. A decision to lift the ban was taken in the meeting,” said Shri Modhwadia.

It is not clear whether the centre is going to lift ban on cotton export totally or partially!

The farmers, ginning mill owners and market yard leaders are not ready to accept partial relief. They are still on strike and waiting for the content of notification. According to ginners and market yard leaders, the strike will be called over, only once the notification is out and its content is studied.

“So far 95 lakh bales are shipped, if the notification permits export only upto 1.20 crore bales, the strike will continue. There should be complete relief and not partial,” said a market yard leader from Saurashtra.

There’s concern about the fact that if ban is not lifted totally, once the restricted number of bales are exported, prices will again come down.

Dirty game against good of cotton farmers began on 9 April 2010 when export duty of Rs 2500 per candy(370 Kg) was imposed by centre, followed by total export ban on 19th of April 2010. Then came license, ceiling and registration regime for cotton export, and another export ban in 2011. After agitation, restricted number of bales were allowed to be exported. Then came 2012, and another ban, even before the already registered number of bales were yet to be exported.

Everytime there’s cotton export ban, the Chief Minister of Gujarat writes a letter to the PM. The farmers, ginners and market yard leaders go on strike and BJP agitates, Congress leader Ahmed Patel and Gujarat Congress Chief Arjun Modhwadia rush to Delhi to meet the concerned minister (earlier Pranabda, then Maran and now Anand Sharma), but not a single word is uttered on permanent solution or consistency in approach on cotton export. This results into tremendous lose to credibility of India based exporters. While Gujarat produces one third of cotton of India, its share in country’s total export of cotton is more than 50%.

Modhwadia justifies ban:

Sudden registration for export of 2.6 million bales in just two days triggered situation of cotton export ban: Modhwadia said justifying cotton export ban. Modhwadia said putting the ban was right decision and revoking it was also correct decision. He said couple of firms registering for 2.6 million bales export should be prevented to do so for benefit of small exporters.