The India Government May Soon Allow More Cotton Exports.

Ministers of India are divided over whether to increase the number of cotton exports. Ministers from the Ministry of agriculture, Ministry of textiles and Ministry of Commerce will make a final decision on this issue very soon.

The Ministry of Commerce has issued a document on this issue, but the Ministry of textiles does not support this year's (-10 September).

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As the price of natural fibers has risen sharply and hit the domestic textile industry, the government has set 2010-11 cotton exports to 5 million 500 thousand bales.

Even after the price adjustment, the Ministry of textile industry did not agree to raise the export ceiling.

Textile minister Rita meon recently said the government would not reset the cotton export quota to 5 million 500 thousand bales this year.

The Ministry of textiles said that this year's output forecast dropped from 32 million 900 thousand packets to 31 million 200 thousand packages, even though prices had dropped.

Meon also said that the domestic textile industry needs raw material protection.

The governor of Gujarat, Narendra Modi, criticized the central government. He said the federal commerce department's policy of restricting the export of natural fibres was purely unfair to farmers.

He called on Prime Minister Manmohan Singh to allow Gujarat to export 1 million bales of cotton.

At the same time, Dilip Sanghani, the agriculture minister of Gujarat State, pointed out that the decline in domestic cotton prices was due to the central government's policy of "anti farmers" export.

However, Nair, Secretary General of the India Textile Industry Federation (CITI), said that the government should not expand the export of cotton this year because of the decline in cotton prices. If the export ceiling is raised, the entire value chain will be disrupted.