Government to lift ban on cotton exports

New Delhi: The government on Sunday decided to lift the ban on cotton exports after widespread opposition to the motion.

Trade and industry minister Anand Sharma announced the decision to allow overseas sales. India is the world's second largest producer of cotton.

"Keeping in view the interests of farmers, traders and industrialists, a balanced view was taken to roll back the ban on cotton exports," said Sharma.

The government banned exports of the fiber of March 5 the fear of falling in availability in view of rising consumption at home.

According to the ministry, higher exports than foreseen in the cotton season 2010-11 has reduced the expected carryover of stock for the current cotton season 2011-12, from 48.30 lakh Bales estimated by the Cotton Council to around 33 lakh Bales.

At the same time production this season was almost the same as last year, and total supply marginally lower.

"Availability was reduced to less than the production levels of 2009-10, and also reduced the advance figure below the recommended inventory level," the ministry said in a statement.

"Nearly 94 lakh Bales already sent out, for about export surplus of 84 lakh Bales," he added.

The ban had evoked criticism not only of the farmer and merchant community, but also of the Chinese cotton industry.

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