Ban on cotton exports deliberate, meant to reassess: Anand Sharma

New Delhi, Apr 29 (ANI): Minister for Commerce and Industries Anand Sharma on Sunday said the ban imposed on cotton exports in March this year was to review its availability and demand situation.

Addressing the media persons here, Sharma said that the ban was a deliberate step to monitor and review the stock of cotton left in the country.

"The government had taken a view on March 9. When it reviewed a restriction imposed on the 5th to remove the ban to suspend further registrations until further orders. That was to monitor, to reassess the availability, the domestic demand and if there was any exportable surplus," said Sharma.

He added that the Cotton Advisory Board's April 18 assessment, that included the inputs provided by the cotton manufacturing states, was being considered to decide further action.

" Their assessment is with the government. The government has looked at all aspects considering the interests of the farmers in particular, the cotton growers, the yarn producers, the textile industry and the handloom sector," the Minister said.

Around 1 million bales cleared by customs but not yet shipped at the time of the ban were also allowed.

The Commerce Minister further said that the revalidation of some items of cotton export, which were earlier being covered under the scrutiny of the ban, has already been done.

" That revalidation has taken place. The DGFT (Director General of Foreign Trade) has informed that the revalidation 19,00,000 bales was done. So the total quantity, which has gone out, is 106,00,000. The remainder would make it 115,00,000 bales," Sharma elaborated.

Finance Minister Pranab Mukherjee, Agriculture Minister Sharad Pawar and Sharma will meet on Monday to take a likely call on whether more exports could be allowed this cotton year.

Government and trade sources had, last month claimed that India was unlikely to allow new cotton exports until July. India supplies about 13 percent of global cotton exports and its biggest customer is China, which had criticised the initial total ban.

Domestic textile mills, that use about 25 million bales of cotton a year, had lobbied for the export ban on worries over supply shortages and soaring local prices.

The Group of Ministers (GoM), in a meeting on April 9, had decided to revalidate the registered quantity covered by the restriction after the scrutiny. (ANI)