Monday, September 27, 2010

Vidarbha Cotton Farmers flays Imposition of Export Duty and Restriction on Cotton Export

Vidarbha Cotton Farmers flays Imposition of Export Duty and Restriction on Cotton Export

Nagpur -27th September,2010

Decision of the Government to impose export duty of Rs 2,500 a tonne on raw cotton and 3 per cent of the free-on-board value of cotton waste with retrospective effect from April 9 and restriction on all cotton yarn exports be registered with the Textiles Commissioner's Office in Mumbai and No yarn will be allowed for exports by the Customs Department until it is registeredwith the Directorate- General of Foreign Trade,is been strongly opposed by vidarbha cotton farmers which is under severe Agrarian crisis is in international news due to on going cotton farmers suicide @ 8 hours in day since June 2005 , Kishor Tiwari of Vidarbha Janandolan Samiti(VJAS )informed in press release today.

"The duty has been imposed due to bring down the cotton prices in the domestic market as Central Government and the Textile Ministry is working under pressure of a powerful textile lobby and will cause huge economic losses to the more than 8 million Indian cotton farmers who have opted Bt.cotton crop for kharif season 2010-11 in 110 lakhs hector but the record rain and massive floods in cotton cultivating areas has damaged most of standing Bt.cotton crop and excessive rain has jumped the cultivation cost to double, but expected yield is likely to reduce to 50% resulting more than Rs.27,000 crore huge financial losses to Indian cotton growers, hence our demand to raise cotton MSP of Rs.4500/- per quintal to compensate farmers accumulated losses but central Govt. has turned down the demand now with putting restriction and export duty ,Govt. has rubbed salt to the wound of the dying Indian cotton farmers” Kishor Tiwari of VJAS added.

‘As this season it was expected that Indian farmer will get good price to the raw cotton as adverse weather conditions have significantly brought down the cotton production in China, Pakistan and USA and There is good demand for Indian cotton and the Cotton Advisory Board has pegged the exports at 80 lakh bales this season but these restriction on cotton export will certainly crash the prices of raw cotton in India resulting mass cotton farmers suicides hence we demand the centre should withdraw these order and give export incentive to the cotton exporter and enhance to raise cotton MSP of Rs.4500/- per quintal to compensate farmers accumulated losses ,it need of the hour , Kishor Tiwari of VJAS added.

"The cotton prices were increased by 20-25 per cent and yarn prices by 40-45 per cent in the domestic market in last four months but only exporters got benefited as farmers sold all raw cotton in less than MSP before that steep price hike, it has been the part routine exploitation of poor farmers in which executive and ministers are playing key role ,same story is set get repeated this year too” Tiwari said.

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