The Ministry of Textiles (MOT) has said that the Government may impose a temporary ban on cotton exports if cotton prices continue to surge.
Just a week back, the Government had waived 11 per cent customs duties on imported cotton until September.
Cotton prices have doubled in a year to over Rs. 90,000 per candy and prices of some varieties of cotton have even touched Rs. 100,000 per candy. A ban could free up cotton for the domestic market and thus help soften prices.
As per a report of Mint, a leading English daily, Textiles Secretary Upendra Prasad Singh
said cotton prices are unlikely to decline before October when the new cotton crops arrive. Cotton prices have been a ‘dampener’ and the problem could persist for some time as there is a global shortage of cotton.
The official said, “Cotton prices haven’t softened as we expected them to. It is not rising too; it’s stagnant at a point. We are evaluating the further course of action and temporarily banning export or imposing quantitative restrictions to check prices is an option. However, policy decisions should not be uncertain or a knee-jerk reaction and these are extreme steps – but if there is a need we will do it.”
Source : https://in.apparelresources.com/