The Textiles Ministry has found deficiency in the way allocation of cotton export quota has been given by the Commerce Ministry and suggested that the procedures may be changed. The government has restricted cotton exports to 5.5 million bales for the current cotton season (October to September).
While administration of the determining cotton export quota for exporters was vested with the Textiles Ministry up to December 15, the responsibility has been recently taken away by the Commerce Ministry.
Textiles Secretary Rita Menon has shot off a letter to her counterpart in the Commerce Ministry Rahul Khullar seeking reversal of the procedure for giving allocations to traders for cotton exports.
Sources said, the Commerce Ministry has accepted applications for export quota allocation even from traders, who have no experience in cotton trade. Of the 5.5 million bales, 3.8 million had already been exported till December 15.
The textiles ministry has expressed apprehension that the fresh allocations would breach the overall threshold in a situation where domestic cotton prices are quite high. Currently, cotton prices are ruling at about Rs 44,000 a candy (356 kg) compared to Rs 33,000 in the same period last year.
