The ban on export of cotton will be lifted with effect from October 1 as a bumper crop is expected in the country owing to a good monsoon and increase in the crop acreage. A communication to this effect has been sent to the state government by the Union Ministry of Agriculture recently.
Not only in India,production in major cotton producing countries like the US,Australia and South Africa is also likely to increase thanks to good rains. Though floods in Pakistan have damaged about 35 per cent of the crop,as per the International Cotton Advisory Council (ICAC) report,cotton traders say it would not affect the overall production.
According to traders,cotton acreage worldwide has gone up by about 15 per cent,which would take care of the damage in Pakistan and China,hit by heavy rains causing floods in its cotton producing belts.
Cotton Marketing Consultant Shafi Ahmed Shah,dealing in exports,said that if cotton from the countrys buffer stocks was not released now,its quality would go down and would not fetch good price in the market. According to him,the Centre has allowed release of 70 lakh bales and seven lakh had already been released.
The Centre had banned the export of cotton because of low production over the last two years due to poor monsoon. Last year,farmers had received a price of Rs 3,000-3,200 per quintal against the minimum support price of Rs 2,900.
India annually cultivates cotton over an area of 1.10 crore hectares,26 lakh of which is in Gujarat. The total cotton production in the country is 3.05 crore bales and around 33 per cent of it is produced in Gujarat.