Date:27/06/2008 URL: http://www.thehindu.com/2008/06/27/stories/2008062761271400.htm

New Delhi

Vaghela rules out ban on cotton exports

Special Correspondent

He plans to urge Prime Minister to cut import duty to check spiralling prices

NEW DELHI: Union Textiles Minister Shankarsinh Vaghela on Thursday ruled out any ban on export of raw cotton in view of the spiralling prices of the commodity and said that he would, instead, soon lead a delegation of representatives of the cotton industry to Prime Minister Manmohan Singh, seeking a cut in the import duty on it to tide over the situation.

Speaking to newspersons here, he noted that the hike in the prices of raw cotton, which had already touched 45 per cent, was too high and said that since any attempt to curb the exports could adversely affect the cotton growers, the best course would be to reduce the import duty.

Noting that a delegation of the cotton industry had met him on Wednesday and had sought the removal of the import duty in toto, Mr. Vaghela said, “it may not be possible to remove the import duty totally. But it could be reduced.”

Asked about the extent to which duty would be reduced, he said he had asked the Textile Secretary to work out what was feasible. “We will take a decision once the Secretary completes the study. I will then take a delegation of the industry to the Prime Minister to seek his intervention.”

There has been a bumper cotton production this year — at 315 lakh bales as against 270 lakh bales last year and 244 lakh bales the year before. Cotton consumption too has gone up to 310 lakh bales from 240 lakh bales in 2006-07 and 217 lakh bales in 2005-06 and exports to 65 lakh bales from 58 lakh bales in 2006-07 and 47 lakh bales in 2005-06.

Briefing journalists on the performance of his Ministry, Mr. Vaghela said the process of starting new centres of the National Institute of Fashion Technology at Bhopal, Shillong and Patna was in an advanced stage. In addition, steps were being taken to set up a centre at Bhubaneswar. Once that was also ready, there would be 12 NIFT centres in the country.

He noted that the area under Bt Cotton had more than doubled — from 10.15 lakh hectares in 2005-06 to 35 lakh hectares in 2006-07 — and that the National Textiles Corporation proposed to develop an Indian Textiles Plaza in Ahmedabad and an international trade tower in Mumbai.

A special scheme for the development and growth of the technical textiles sector would be implemented during the current Five Year Plan period at a cost of Rs. 44 crore, he added.