Upendra Prasad Singh, Union Textiles Secretary believes, a ban on cotton exports will not prove beneficial at this juncture as outbound shipments of cotton are unviable now, due to the rise in domestic fiber prices. The rise in logistics costs also makes exports unviable at the moment, he adds. The textile and garment industry has been seeking an immediate ban on cotton exports to boost domestic supplies and curb the exorbitant rise in fibre prices and its by-products. In the past one year, cotton prices have more than doubled to breach the Rs 100,000-mark for a candy of 356 kg.

Yarn prices, too, have skyrocketed, reflecting the jump in primary raw material (cotton) prices. The government is working with industry players to find out ways to boost domestic supplies in the short term, says Singh. It has finalized certain import deals after an effective duty of 11 per cent was scrapped recently. The government also expects a variety of cotton harvested in summer to arrive soon However, the supply from this harvest is limited—about 5-10 lakh bales. Domestic cotton production is now estimated to be just about 314 lakh bales, of 170 kg each, in the current marketing year through September. On the other hand, consumption is estimated to be about 340 lakh bales.