No need to ban cotton export, says Maran

The Union Minister of Textiles, Dayanadhi Maran, on Wednesday said the current situation does not warrant any ban on raw cotton export.

The ban is being keenly sought by different stakeholders of the textile and clothing segments of the industry.

Production estimates

Speaking to reporters here on the sidelines of a function to release a book on jute, the Minister said that according to the latest production estimates, the current cotton year (October to September) would see cotton production in the range of 295 to 300 lakh bales. He hoped that fresh arrivals would trickle in the markets in the second week of December.

He said last year the domestic consumption of cotton was 230 lakh bales against the production of 290 lakh bales.

Hence, there is no question of seeking a ban on raw cotton export, “especially at this point of time but if the situation worsens, we will respond” adequately, Mr Maran categorically stated.

Book on jute system

Earlier, he released a book on the International Jute System, authored by Chhabilendra Roul, joint secretary in the Ministry of Power. Roul had earlier served in the Textile Ministry. Maran said that the jute industry used to earn 25 per cent of the country’s foreign exchange at the time of Independence.

Subsequently, the monopolistic tendencies among the jute mills had led to the golden fibre’s gradual decline.

He urged the jute industry to go in for diversified use, as the Ministry of Textiles had evolved several proactive schemes. He regretted that there were not many takers for the Technology Upgradation Fund Scheme of jute.

Relief sought

Later, a joint delegation of associations of knitters, embroiderers, compactors and collar machine operators from the hosiery hub Tiruppur met Maran and presented a memorandum seeking relief for the jute industry that contributes around Rs 11,000 crore a year through exports.

They sought deemed export status for all the Federation members and pleaded for export benefits when they fulfil the export obligation through third party exports.

Taken from Business Line