scorecardresearch

Piyush Goyal calls for more cotton imports to tide over shortage

At a meeting of a textile advisory group in Mumbai on Sunday, the minister also stressed the need for “realistic, accurate statistics across the value chain”, the textile ministry said on Monday.

cotton price pic
The minister directed that a portal be created for this purpose, with inputs of the Cotton Association of India, ginners, the Confederation of Indian Textile Industry and the Southern India Mills’ Association.

Commerce, industry and textiles minister Piyush Goyal has called for greater imports of cotton to tide over a domestic shortage in the short term. The import duty on cotton has been scrapped until December 31.

At a meeting of a textile advisory group in Mumbai on Sunday, the minister also stressed the need for “realistic, accurate statistics across the value chain”, the textile ministry said on Monday.

The minister directed that a portal be created for this purpose, with inputs of the Cotton Association of India, ginners, the Confederation of Indian Textile Industry and the Southern India Mills’ Association.

The domestic cotton output is now estimated by the farm ministry to be just about 31.4 million bales, of 170 kg each, in the current marketing year through September, way below its initial projection of 36.2 million bales. Domestic consumption, meanwhile, has been estimated to be about 34 million bales. A more realistic projection in the beginning of the year would have the industry better for any potential shortage, industry executives have said.

Meanwhile, cotton prices have more than doubled in the past one year to breach the `1 lakh-mark for a candy of 356 kg. Since local prices have exceeded the global levels, a ban on cotton exports at this juncture won’t serve any purpose, as outbound shipments are in any case not taking place, textiles secretary UP Singh told FE last week.

The meeting of the cotton advisory group, led by industry veteran Suresh Kotak, on Sunday discussed how to deal with the current situation and how to draw a long-term strategy to improve cotton output and productivity in the country, among others. The group, set up earlier this month, has representation from the ministries of textiles, agriculture, commerce and finance, along with Cotton Corporation of India and Cotton Research Institute.

Get live Share Market updates and latest India News and business news on Financial Express. Download Financial Express App for latest business news.

Most Read In Market