New Delhi, India: The government will use satellite technology to assess cotton prospects for the current season and review the export policy in the wake of rising prices of the natural fibre, according to Rita Menon, Textiles Secretary, Government of India.
“When the Cotton Advisory Board (CAB) meets, it will have an assessment based on the satellite imagery and the inputs of the Ministry of Agriculture,” Menon said.
The CAB, which has been constituted by the government to monitor domestic and international prices of cotton and cotton yarn, is likely to hold a review meeting either in December or January, she said.
The cotton season runs from September through October. The government has allowed export of 55 lakh bales (170 kg each) of cotton for the current season without duty. Cotton prices are rising both in the international and domestic markets due to droughts and floods wiping out a lot of the cotton harvest in China and Pakistan.
There are projections of a record production of cotton at 325 lakh bales in 2010-11 against the estimated demand of 266 lakh bales.
The commodity prices in India have witnessed a rise of 89 per cent, according to the information provided by the Minister of State for Textiles Panabaaka Lakshmi in a written reply in India’s Parliament house.
While the textiles industry is up in arms against cotton exports, the Agriculture Ministry seems inclined to let the growers take advantage of the rising international prices.
Source: Business Standard