NEW DELHI, FEB. 24
The government has said that it will continue to keep a watch on the cotton sector that had recently witnessed some volatility, and will take appropriate steps as and when required. “The inter-ministerial committee has decided to keep a watch on the (cotton) situation and meet as and when the situation warrants,” an official release said.
The panel, which had met here, noted that the situation with respect to cotton availability, prices and exports is satisfactory for now, but decided that the current dispensation may continue, it said. The committee comprises Commerce Secretary S R Rao, Agriculture Secretary Ashish Bahuguna and Textiles Secretary Zohra Chatterjee.
In the 2011-12 season - October to September – the natural fibre exports were to the order of 12.5 million bales (170 kg each), which far exceeded the limit of 9 million bales set by the government. This led to the shortage of cotton for domestic consumption which led to higher prices, reports PTI.
Last month, the Cotton Advisory Board had slightly lowered the cotton output projection to 33 million bales, from 33.4 million bales estimated earlier for the current season. But the board had revised upwards the natural fibre exports to 8 million bales for the current season, from 7 million bales estimated earlier. The projected consumption by mills has also been revised upwards to 23.4 million bales, from 23 million bales. The closing stock estimate was retained at 3.45 million bales. (Source: Tecoya Trend)