Full text of central minister Anand Sharma’s letter to Narendra Modi

Ahmedabad, 9 April, 2012

Gujarat Congress today released a letter that central minister Anand Sharma has written to Gujarat Chief Minister Narendra Modi on ‘subsidy on meat export’ and cotton issue. Following is the full text of the letter:

Dear Shri Narendra Modi,

My attention has been drawn to a public statement made by you on 4th April 2012 in a public meeting at Rajkot, alleging that the Central Government is taxing export of cotton while offering subsidies on meat exports. I was shocked that a Chief Minister of a large state had made an unwarranted statement without ascertaining the facts of the matter.

You would recall that I had written a detailed letter to you on 14th March 2012 outlining the contours of cotton export policy. The policy strives to strike a fine balance between the interests of all stakeholders in the cotton value chain farmers, ginners, traders, yarn producers and exporters, This year, india has exported 100 lakh bales of cotton, the highest ever, as against 78 lakh tast year. A Group of Ministers headed by Finance Minister, is maintaining a close watch on this matter and is scheduled to meet again on 9th April 2012. Till date, no tax has been imposed on export of cotton. On the contrary, cotton exports are eligible for claiming 1% duty drawback.

Government of India is alive to the interests of the cotton farmers and has already authorized Cotton Corporation of India to intervene in the Mandis of Gujarat for carrying out commercial operation for buying 15000 bales of cotton per day at rate of Rs. 4,400 per quintal and Grade-A Kapas at Rs. 4,500 per quintal. This is well above the prevailing Minimum Support Price and will ensure that the interest et farmers is fully protected while assuring supplies for domestic yarn industry.

Government does not give any subsidy whatsoever for meat export either, contrary to your understanding.

I wish you would be restrained and judicious while making public statements on government policy. lt would be unfortunate to view matters of public: policy from the narrow prism of partisan politics.

With best regards,
Yours sincerely,
Anand Sharma