Saturday, 5 May 2012

Indian Govt. Put Fresh Stringent Condition for Cotton Export resulting in Cotton Price Crash

Indian Govt. Put Fresh Stringent Condition  for Cotton Export resulting in Cotton Price Crash

Nagpur-5th May 2012

The UPA Govt. flip-flop policy on free cotton export under Open General License (OGL) is till continue even after PMO intervention as  Director General of Foreign Trade (DGFT) issued fresh Notification No. 113  (RE-2010)/2009-14 on   4th  May, 2012 imposing fresh quota for revalidation pending RCs which will not allow any further cotton export as main exporter will not permission exporter where fresh exporter will get peanut and once again  such  conditional lifting of cotton export ban by the union commerce and industry minister is nothing but an eyewash as the DGFT notification issued on yesterday has disappointed exporters, traders and cotton farmers of the country, opined president of Vidarbha Jan Andolan Samiti (VJAS) Kishore Tiwari.
Here is fresh stringent conditions fort the registration introduced by DGFT v.i.z.:

 (i)           An exporter can apply for one RC at a time for a maximum quantity of 10,000 bales (1 bale=170kg) or actual quantity exported in the current cotton season, whichever is less. Exporters who have exported upto 1500 bales during current cotton season and new comers (a new comer is an exporter who has not exported cotton in the current cotton season) can apply “upto  1500 bales”. Eligibility to apply for a subsequent RC will be on completion of at least 50% of the exports against the RC obtained now under this notification (exporters would be required to submit the documentary proof of such exports to the concerned RAs alongwith the application for issue of new RC).
(ii)          For ease of calculation, RC holders are encouraged to apply in next higher multiples of 10. (For example an exporter who has exported 1387 bales during current cotton season is encouraged to apply for 1390 bales).
(iii)            It is reiterated that revalidation of Registration Certificates will not be permitted as mentioned in para 3 of Public notice 102 of 16th March 2012.

‘On Friday only Indian union minister Sharad Pawar has informed the nation that here is bumper record crop of cotton of 35 millions as against domestic requirement of 20 million bales and all barriers of export are removed even commerce and trade minister Anand Sharma announced last week that in the interest cotton farmer we are lifting all restrictions on cotton export and now new export quota of bales is a deliberate attempt of the power drunk and corrupt 'Babus' in the commerce and industry ministry to cover up the hidden restrictions in the rollback proposal which in fact brings fresh export ban on purchases and trades.The latest order clearly says that the issue of new registration certificates (RCs) as new norms which is will exclude the main exporter involved in 90% of cotton export  where as such quantitative restrictions are against WTO guidelines and leads to unfair trade practice directly effecting 7 million cotton growers in India who are killing themselves due to debt and cotton crop failure   which ultimately give ample scope for further exploitation and corruption in the DGFT. Consequently, the cotton bales marketed at Rs 36,000 and above have been brought down to Rs 33,400 level.

"We demand blanket lifting of export ban under free export of raw cotton under open general license that can save debt trapped seven million farmers of India," said Tiwari.

Tiwari demanded a CBI probe into the circumstances that forced to take the ill-motivated decision to enforce a fresh ban on the cotton export in the light of the revelation of the union agriculture minister Sharad Pawar, observations of the fact finding committee of GOM and the protest by the chief ministers of Maharashtra, Gujarat and Andhra Pradesh.

He has also urged the PM to sack Sharma for misleading the government and public.

"last week only  three million cotton farmers of Vidarbha, who are facing crop losses and committing suicides at the rate of three farmers a day, had welcomed the commerce minister Anand Sharma's announcement that the government has decided to withdraw the ban. But they have been fresh notification has brought only gloom to shatter their dreams," Tiwari said, adding that the minister misled the media and innocent farmers.

"It is highly immoral and illegal hence we urge the PM to review the notification and bring back pre-export ban conditions so that cotton export is protected. 'If UPA Government has problem with the growth of cotton export and want to protect textile cartel then they should buy cotton at international rates through its agencies like NAFED and CCI," Tiwari said, adding, "It would help protect the farmers who are forced to sell cotton at throw away price to local dealer.

"Domestic demand is just 20 million bales as against national production of 35 million bales. There is no reason to put restrictions when interest  of domestic textile mills are fully protected," Tiwari pointed out.
Fresh notification is attaché dherewith

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