BANGALORE: The partially revoked cotton export ban has failed to bring smiles on the faces of farmers across the state.
The Directorate-General of Foreign Trade (DGFT) notified that they partially lifted the ban on cotton exports imposed on March 5 allowing export of quantities that were registered but not shipped. However, the notification said the Centre will not give any new registration certificates for cotton export.
All registration certificates need to be submitted to DHFT for scrutiny and revalidation. Export can be effected only after the RCs are revalidated.
“The price of cotton has fallen down to `2,800 from `4,200 per quintal in a month. Many farmers are holding back their stocks expecting a rise in price. If the ban is not completely removed, farmers might face hardship,” said Chanabasappa Shivappa Kombali, president of Natural Resources Development Association of Ranebennur, Haveri
Cotton in Karnataka is produced mainly in Dharwad, Chitradurga, Gadag, Bijapur and Belgaum districts. Industry experts believed the ban was necessary as the exports cannot continue at an unprecedented level.
Also, enough should be made available at local markets.
Commenting on the scenario, president of Tirupur Exporter’s Association said, “If we do not restrict then we might have to import at a higher cost, which will not be ideal for the industry.”
Karnataka Chamber of Commerce and Industries (Hubli) president N P Javali told Express, “Exports can be controlled provided farmers get competitive prices in domestic markets. It should be revoked entirely instead of restricting issue of new registration certificates.”