From the Editors Desk  
EDITORIAL
The Government has lifted nearly 2-month-old restriction on cotton exports under the pressure of its allies. The Cotton Corporation of India has been asked to build a buffer stock of 10 lakh bales to meet any emergency during June, July and August.The Cotton Advisory Board has revised cotton production estimates to 3.47 crore bales from 3.45 crore bales for the current season that ends in September. Domestic consumption has been estimated downwards at 2.5 crore bales from 2.6 crore bales.
It is estimated that global cotton prices will be declined by around 4.0 percent after resumption of Indian exports as India is world’s second-largest cotton producer, next only to the US but price in domestic market has now started increasing even after demand in the domestic market is on lower side by almost 10 lakhs bales. Textile mills owners are not happy with this decision stating that the country does not have any exportable surplus. They have apprehension that this step would be proved disastrous for domestic textile industry which already facing a numbers of problems. The cotton price in international market will be declined and this would give an edge to other countries.
Here situation is bit difficult and not possible to satisfy both the lobbies whose interests are just opposite. Lifting ban make happy to Cotton farmer whereas putting ban make textile mills owner happy. The government must have to make a balance between both the demands. It should be ensured that farmers should not get less money for their crop and at the same time Textile mills owner should also not suffer from high price in domestic market. If we go by estimated cotton production and its consumption in domestic market, it is appropriate to lift ban on cotton export. It wise decision of the Government that this decision will be reviewed after three months assessing the situation in domestic market. 


-editor

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