Ginning units in Gujarat claim hardship due to export cap

About 800 ginning units, out of the total 1,000 units in Gujarat had been forced to stop the production due to Centre's delay in taking a decision on the export permissions for cotton, an industry association said today. The industry and the cotton farmers were facing losses due to the fall in cotton prices in the domestic market, it said.

Anand Popat, secretary of Ginning Association, said that Union Finance Minister Pranab Mukherjee and Union Textile Minister Dayanidhi Maran had assured the association's delegation on May 19 that the issue would be resolved, but no action was taken subsequently. After the assurance, the strike of ginning mills, which was on from May 15, was called off.

The industry wants Centre to remove the cap of 55 lakh bales on the cotton export. "Last year, 85 lakh bales of cotton was allowed to be exported, as against 55 lakh this year," Popat said. It was necessary to remove the cap for the benefit of the farmers in the state, he said. Association has demanded an export quota of 15 lakh bales for Gujarat as a special case.