Maharashtra Cotton Farmers urged The Prime Minister of India free Cotton Exports
Nagpur –April 8 , 2012
The largest Cotton growing state Maharashtra more than 5 million cotton farmers who are facing crop failure in more than 4 million hector has urged the Prime Minister of India, Dr. Manmohan Singh to allow free export of cotton from India immediately as since 4th of the march cotton export has been almost stopped and commerce ministry is too adamant to allow additional export cotton bales even official estimates indicates that there will more 10 million cotton bales surplus is immediate decision of lifting stringent restrictions is taken on group of ministers(GOM) meeting scheduled 9th April which was differed earlier on 3rd April without any reason in fact union Agriculture Minister Sharad Pawar has openly expressed his anguish over needless move of commerce ministry to put export ban, keeping his Agriculture Ministry in dark hence now PMO intervention is must for immediate lifting of the ban on cotton export and cotton export need to be brought under Open General License without any quantitative and other restrictions ,informed farm activist Kishore Tiwari of Vidarbha Jan Andolan Samiti VJAS, who is working for cotton farmers of the Maharashtra.
Vidarbha Jan Andolan Samiti VJAS in its plea to the Prime Minister of India has argued that India even when it was a net cotton deficit country has allowed cotton exports under Open General License (OGL), it is ironical that when India is currently a cotton surplus country, restrictive policies are in place. Currently, DGFT has put cotton export on hold which has lost creditability of Indian cotton trade in international market has severely impacted cotton economy of agrarian crisis hit Maharashtra where Govt. has already declared relief package of Rs.2000 crore hence Prime Minister of India should look in to very serious issue of 5 million dying cotton farmers of vidarbha ,Tiwari urged
DGFT recent Trade Notice 24 dated 20th March, 2012 (attached) after controversial Notification No. 106 (RE-2010)/2009-14, dated 12th March, 2012 issued with reference so called lifting of cotton export ban has resulted in fresh withdrawals of new exports permissions as so called Scrutiny and revalidation of Registration Certificates(RCs) for export of cotton of DGFT literally stalled on cotton export by sea and road both and which has dampen the market sentiments further and resulted price cash in candy for line and for raw cotton too hence farm activist Kishore Tiwari of Vidarbha Jan Andolan Samiti VJAS, has demanded GOM who is likely to meet on 23rd march to review situation to lift all restrictions on cotton exports and remove the environments of fear where traders’ and exporters’ are being scanned as smugglers’ and are being subjected to unwanted harassments and massive corruption .
“When cotton arrival as per CCI data is only 260 lakhs bales as against 298 lakhs bales of last year and as per lowered estimate till 100 lakhs bales arrival is awaited hence such restrictions will put more than 7 million cotton growers ,traders and exporters huge economic losses and will damage Indian cotton trade to larger extend hence protecting handful garments industries DGFT all unfair trade practices should curbed and there is urgent need to review the functioning of commerce ministry where some Babus are detecting their terms to ruin agrarian economy of cotton growing region of India henc ewe demand urgent intervention ”Tiwari added.
DGFT recent Trade Notice 24 dated 20th March, 2012 says that Government has decided that priority in scrutiny and revalidation should be accorded to the cotton consignments that were handed over to customs till 2400 hours on Sunday, 04 March, 2012, when the prohibition had come into force. Greater priority will be accorded to cases pertaining to Land Custom Stations (LCS) on Indo-Pakistan, Indo-Bangladesh and Indo-Nepal border to ease congestion there but in fact they is no congestion and moreover main issue of clearing and issuing fresh RC to china which contributes more than 70% of total export hence motive behind the recent trade notice is also ill- managed as same trade notice further add that fresh export would be permitted only after revalidation of RCs and there is package deal for fresh revalidation and DGFT officials are demanding big cash fro RC hence we demand unconditional export of cotton as per WTO norms and Indian free tarde policies ,Tiwari added.
Earlier DGFT had disappointed exporters, traders and cotton farmers and hidden restrictions in roll back order has turned out to be fresh export ban to purchases and trades hereinafter as it is clearly says that issue of new RCs stands suspended until further orders and in respect of those RCs, that were valid as on 05.03.2012 and for which LEOs are yet to be issued & exports completed. All RCs would need to be submitted to DGFT for scrutiny and revalidation. Exports can be affected only after RCs are revalidated hence now getting extension to existing contracts will give scope further exploitation and corruption in DGFT that has deepen sentiments of market and bales which were traded @Rs.34,000 above has returned to @RS.32,400 level resulting there is no change in the local market were farmers are surprised see @ Rs.3400 per quintal as against international rates of @Rs.45,000/- hence roll back on cotton export ban is nothing but the eyewash hence we demand blanket lifting of export ban under free export of raw cotton under OGL that can save dying debt trapped 7 million farmers of India, informed farm activist Kishore Tiwari of Vidarbha Jan Andolan Samiti VJAS,.
‘If UPA Govt. has problem with growth of cotton export they want to protect textile cartel then they should buy cotton@ international rates with his agencies like NAFED and CCI. ,protecting the innocent dying cotton farmers’ who are forced to sale cotton at throw price to local dealers who are subjected to market forces and volatile export policies of UPA Govt. most of the time managed by handful people hence PM should intervene ’Tiwari urged.
“when Indian domestic demand is just 20 million bales as against national production of 33 million bales there is no reason put restrictions when interest of domestic textile mills are fully protected .the decision to ban Indian cotton export is another example rampant corruption going on in UPA Govt. there is big names involved in the sudden export ban will expose the all misdeeds of commerce ministry hence for the first time farmers suicide issue has given focus of wrong policies of state ,we will see that the truth is prevailed” Tiwari added.