CCI to check dip in cotton prices

Pawar also asked the Cotton Corporation of India (CCI) to take immediate steps for exporting the commodity to countries like China where there was a huge demand waiting to be tapped.

Overall exports are projected at 15 lakh bales of 170 kgs each in 2004-05 up from nine lakh bales in the previous season.

‘‘CCI has been asked to develop a separate wing which will concentrate on exports, particularly to China,’’ said Pawar. He added that there had been a 250 per cent increase in spinning capacity in China which the country was not in a position to utilise with domestic cotton alone. He said at present there was no need to tinker with the import duty on raw cotton and there were mills which had to source the commodity from abroad ifor the quality specifications of finished products.

‘‘If later we feel there is potential of huge imports, we will ask the respective ministry to increase the customs duty,’’ he added.

Before this meeting, Agriculture secretary Radha Singh had written to her counterpart in textile ministry Wajahat Habibullah, seeking immediate intervention.

In addition, the International Cotton Advisory located in Washington DC has estimated an all time high production of cotton during the year 2004-5,.

Reports from the field suggest that due to increasing arrivals of cotton in the market, prices are already skidding and farmers in North India are selling their produce below the MSP.

Government had hiked MSP for 2004-05 season for F414 variety of cotton to Rs 1,760 a quintal from Rs 1,725 per quintal. MSP for H4 variety was increased to Rs 1,960 from Rs 1,925 a quintal.