Friday, 8 July 2011

Cotton farmers demand CBI probe into alleged Rs. 500 crore scam -MeriNews Report

Cotton farmers demand CBI probe into alleged Rs. 500 crore scam
The present cotton crisis in India is the result of wrong policies enforced by ex-textile minister of India to protect the interest of handful textile mill owners. Cotton farmers have demanded CBI probe into the case.

Kishore Tiwari of Vidarbha Janandoaln Samiti in a letter to Prime Minister Dr.Manmohan Singh said that his samiti has documentary evidences to support these claims, and demands a CBI probe into this “Cotton Export Ban Scam”.
“We have a strong case against the Ex-Textile Minister Dayanidhi Maran and are ready to submit all proof of mega corruption to C.B.I. if PMO direct the CBI for the same. If PMO fails to take any action then we will move Mumbai high court Nagpur bench for relief,” Tiwari added in the letter.

Cotton prices have further crashed in India and as a result more farmers are committing suicide, Tiwari informed in a press note. The unholy cartel of finger counting textile tycoon and Union Textile Minister Dayanithi Maran, which is responsible for the present cotton crisis in India. Farm activist group Vidarbha Janandolan Samiti (VJAS) has urged the PM to sack Maranto savemore than 5 million dying cotton farmers of Maharashtra, he added.

“Hundreds of cotton farmers and farm widows are marching to Delhi to meet Indian Prime Minister and UPA Convener Smt. Sonia Gandhi for urgent intervention in order to resolve the crisis as Textile minister initially restricted cotton bales export to 55 lakhs bales from earlier year 84 lakh bales even when country cotton production was higher... and now surprisingly as per Quota Policy of Cotton items has now added Cotton Waste ( Comber Noil)H. S. Code No. 5202 as cotton waste is a‘By-product’ of cotton yarn...,” Tiwari said.

“Cotton prices have increased from Rs 30000/candy in April 2010 to Rs 60000/candy April 2011 which is an increase of about Rs 70-75 per kg and immediately spinners increased the price of yarn from Rs 150/- per kg in April 2010 for 30s combed to Rs 230/- per kg in April 2011...Fabric weavers too have increased prices of grey fabric of 40 x 40 counts 124 x 64 with 200 gm per mtr which is quoted at about Rs 70/- per sqmtr as against Rs 38 in April 2010. There s an increase of Rs 32/mtr which is Rs 160/- per kg which in terms of candy is about Rs 58/60000 and present ban on export has brought back cotton prices to the level of April 2010 which is artificial and Union Textile Minister Dayanithi Maran is directly involved in this scam ” Tiwari added.

“As Cotton is an agricultural commodity and higher the prices farmers get, they will be encouraged to produce more and more of cotton and when cotton production has grown from a low of 225 lac bales to 330 lac bales in last 5 years the undue protection to local textile mills benefiting of buying Indian cotton at prices which are at least lower by 30% as compared to its competitor in Bangladesh, Pakistan and other countries who buy from other growers which is the reason behind the present restriction of cotton export. And when Indian cotton after lot of hard work and promotion by exporters has found a very stable and regular market of its cotton in foreign countries the Govt should ensure that the markets created are not lost to competition due to faulty Govt policies,” Tiwari continued.

He further urged the government to intervene in the matter and lift all export restriction on cotton bales and yarn.

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