State tops cotton production chart for fifth time in a row

But farmers,ginners and traders are keeping their fingers crossed due to the change in export policy and the introduction of mandatory licensing). Earlier,the government had enforced a month-long ban on export.

According to figures released by the Cotton Corporation of India,production in Gujarat by May 15 touched 92.5 lakh bales,and by the end of the season,it is likely to touch the record 1 crore bales mark.

Meanwhile,Maharashtra has registered a production of 60.75 lakh bales in the corresponding period,followed by Andhra Pradesh with 49 lakh bales. Gujarat accounts for 50 per cent of the country’s total cotton export.

Anand Popat,Secretary,Saurashtra Ginners Association,said: “We do not know how far we will be able to reap the benefits in the wake of the new licensing policy.”

Last week,following intense representation from farmers,ginners and traders,the Centre had lifted the total ban on exports. But now,instead of the textile ministry,the matter will be looked at by the commerce ministry,and traders will have to get their licence from the Director General of Foreign Trade.

So far,cotton export did not require any licence. Traders were only required to register the deals with the textile ministry.

Trader Bharat Patel said: “We are still waiting for the details of the licensing policy. We have kept our fingers crossed. We don’t know yet what will be the licence fee or if there will be any quota or limit on export. The future of farmers,ginners and traders depend on the new policy.”

Popat said enforcing any limit or quota on export will affect the domestic prices. “Farmers and ginners might have to settle for low prices,” he said.

In view of the huge backlog,the Centre’s move will be eagerly watched by the stakeholders. Before the ban on export,some 61 lakh bales were exported,and Gujarat’s contribution was nearly half of it. Currently,farmers in Saurashtra have a backlog of around 20 lakh bales and ginners have some six lakh bales. The ban,which led to fall in prices,has hit the industry hard and is likely to affect the next crop pattern. Within a week of the ban,domestic cotton prices fell to Rs 685 per bale (20 kg) from Rs 715.

“Future price will depend entirely on the export policy,” Popat added.