A group of ministers looking in to the issue of a ban imposed on cotton expoerts from the country has failed to arrive on a decision.
Union Agriculture Minister Sharad Pawar had written a letter to the Prime Minister to protest a decision by the Commerce Ministry to impose a ban on cotton exports from the country.
The government had announced a day after the imposition of ban that the decision will be reviewed by a group of ministers including Mr. Pawar and the finance minister besides the commerce minister.
The panel finished their meeting without arriving on a decision on the issue on Friday, following criticism from top importer, China. The government’s ban on cotton has already resulted in an increase in prices in the international markets. The International Cotton Association (ICA) has also expressed concern over the unilateral ban on the export of cotton from India.
The ban was imposed on the basis of recommendations of a committee of secretaries. The suggestion came after concerns of increasing prices and a possible shortfall for the Indian industry to meet its production targets.
On the one hand, the ban favors the interest of the industry but on the other hand, it resulted in a fall in the prices of cotton and lesser income for growers in the country. Farmers are seeking the Cotton Corporation of India intervention into the issue to revoke the ban on export of cotton from India.
Indian cotton exports are only allowed to go ahead with the sale of 500,000 bales that have already been cleared by customs. According to estimates, they have 2.5 million bales outstanding for sales to foreign customers.