The Union government plans to impose a temporary ban on cotton exports if prices continue to surge, says Upendra Prasad Singh, Textile Secretary.
Cotton prices have doubled in barely a year to over Rs90,000 per candy. Prices of some varieties of cotton have even touched Rs100,000 per candy. A ban could help soften prices by freeing up cotton for the domestic market, adds Singh.
High cotton prices affect the Indian textile industry disproportionately, as it is heavily dependent on cotton, unlike other markets where man-made fibre occupies a larger share.
Singh opines, cotton prices are unlikely to decline before October when the new cotton crops arrive. Cotton prices have been a “dampener" and the problem could persist for some time as there is a global shortage of cotton, he adds.
