Nagpur – Cotton exports are likely to get banned if the government fails to tie up other threads to cool down high cotton prices. The report was made public by the government officials on Tuesday, when the central government notified industry players of the need for immediate action.
During the meeting, which was convened by Union minister Piyush Goyal, Minister discussed a blanket ban on exports until September. The pressure is on the cloud as the government has to continuously intervene in the market amid a jump in cotton prices hitting textile manufacturers across the country.
Speaking of the numbers, Wholesale price index-based inflation for textiles, which right now is in double digits for the past several months, surged up to 12.98% in April, according to the data released earlier in the day.
One of the industry representatives said, “Government has advised cotton exporters to make sure they reduce their exports by 25% compared to last year so that more yarn is available for domestic consumption.”
The Federation of Indian Export Organisations (FEIO) informed the ministry that high costs of production are presenting a challenge to exporters. They suggested that cotton should be brought under the Essential Commodities Act, which will in turn allow the government to control price, production, distribution and supply of commodities.