Amid continuous rise in cotton prices, Textiles Minister Piyush Goyal on Monday asked officials to take a decision at the earliest on extending the exemption of import duty from earlier September to December 31.
This comes amid mounting pressure on the government to intervene in the market amid a spurt in cotton prices affecting garment manufacturers across the country.
In a statement, the Ministry of Textiles said, “With regard to extension of exemption period till 31st December, Textiles Minister Piyush Goyal has directed the concerned officers to finalize the matter at the earliest.”
The import duty waiver till September proved ineffective in controlling cotton prices, which had risen in the past. 1 lakh per bale. Prices had doubled in less than a year due to a sharp jump in international demand.
Textiles Secretary Upendra Prasad Singh told Mint last month that cotton prices have not softened as the government had expected them and the government is evaluating further action, including a ban on cotton exports till September.
The ministry further said that the closing stock of cotton is around 41.27 lakh bales, which is equivalent to 45 days’ consumption stock.
“As per the estimates of the Committee on Cotton Production and Consumption, the carry-over/closing stock is 41.27 lakh bales, which is approximately equal to 12.66% utilization ratio and stock for 45 days of consumption,” the ministry said.
Suresh Kotak, Chairman, Textile Advisory Group, stressed on the need to ensure availability of seeds for sowing, especially the new early maturing varieties.
According to the statement issued by the ministry, Kotak stressed on the need to reform the seed system to increase the productivity of Indian cotton from the current “stagnation”.
Goyal further said that the factors affecting productivity need to be tackled in a time bound manner and the industry should “participate in self-regulatory mode”.
“The ginning segment should take responsibility and make pheromone trap techniques mandatory to prevent the spread of pink bollworm pest attack from ginning and oil extraction units to cotton crops in farmers’ fields,” Goyal said.
The Minister further suggested that everyone be sensitized for the mandatory use of Pheromone Trap Technology along with the efforts of the State Governments in this regard through the extensive network of Cotton Corporation of India Limited.