The frequently changing policy of the Indian Government regarding allowing export of cotton and its accompanying impact on prices in the domestic market have made cotton growers to rethink about cultivating the crop next season.
The Government of India has changed its policy seven times since April 2010, when it banned the export of cotton.
The latest policy change was a sudden ban on cotton exports announced on March 5, 2012, followed by a subsequent partial rollback of the same on March 12. Since then, Gujarat and Maharashtra, the two major cotton producing states in India, have witnessed a lacklustre trade in cotton.
Mr. Dilip Patel, President of All Gujarat Cotton Ginners Association (AGCGA), told fibre2fashion, “The cotton production would definitely be affected next season due to the Government’s frequent policy changes with respect to allowing cotton exports.”
“On the one hand, cotton prices are going down and on the other the prices of oil are going strong. Hence, the sowing of cotton will be diverted to oil based commodities like groundnut, castor and soyabean in Maharashtra and Madhya Pradesh,” he reasons.
“Overall, the sowing of cotton would be less by about 15 percent compared to last season,” the AGCGA President opines.