New Textile Minister Anand Sharma urged to bring raw cotton under Open General License (O.G.L.)

New Textile Minister Anand Sharma urged to bring raw cotton under Open General License (O.G.L.)

Nagpur – July 13, 2011

It was lifting of quantitative restrictions in 2004 for free cotton import by the NDA Govt. which allowed dumping of cheapest 20 million cotton bales resulting in economic recession and start of cotton farmers’ suicide spiral in vidarbha and now once again it has re-imposed in 2009 when present UPA Govt. introduced stringent cotton export both the time to protect the interest of handful textile mills owners who want cheaper raw cotton at cost of 1 billion dying cotton farmers and this is highly unfair trade practices protected and promoted by state hence vidarbha cotton farmers who are suffered maximum losses and reported more than 10000 farmers suicides after wrong policies of cotton export and import in introduced has written to new powered Indian textile minister Anand Sharma to lift all quantitative restrictions of on raw cotton and provide export incentive to farmers’ so that their economic interest is protected as done by US Govt. in America, Kishore Tiwari of Vidarbha Janandolan Samiti informed today.

“India has reported more than 2 lakhs 34 thousands farmers suicides in last decade which largest genocide in the history of mankind and 90% of farmers who killed themselves are manly cotton growers and wrong Govt. policies related to export and credit and faulty cultivation pattern and input are the main causes of despair and distress which is killing the innocent farming community in India .this is blot to all human kind in the world and fact is much more humiliating the nation like America is manly responsible for the farm genocide” Tiwari informed

Letter written by Vidarbha cotton growing farmers advocacy group Vidarbha Janandolan Samiti(VJAS) has urged New Textile Minister Anand Sharma to examine the fact that there is surplus stock of at least 50 lakhs bales and textile ministry has given it’s node to the demand of agriculture and commerce ministry recommendations of additional permission of 50 lakhs bales in order to protect the financial interest of Indian cotton farmers who are committing suicides as prices of cotton slashed to 50% in month where as uncertainties and unjust quantitative restriction has always allowed the textile cartel to get cheaper cotton by 30% . this is part of textile lobby to get cotton export curtail so that they can exploit the situation .it’s unfortunate that textile minister is playing on direction of this textile cartel that has ruined around one billion cotton farmers to tune of Rs.20,000 crore and losses are likely to be more if Indian Govt. function with anti farmer policies ”Tiwari added

“Indian textile lobby has managed the Indian Textile minister initially to restrict cotton bales export to 55 lakhs bales from earlier year 84 lakh bales even when country cotton production is higher by another 25 lakhs bales then ban export of cotton yarn and now surprisingly as per Quota Policy of Cotton items now added Cotton Waste ( Comber Noil) H. S. Code No. 5202 as Cotton Waste is a ‘By-product’ of Cotton Yarn. when plenty of quota of Cotton Yarn lying unutilized the hostile functioning of ex-Union Textile Minister Dayanithi Maran whowas party to a textile cartel to include the by-product banned ” Tiwari said..

“we have asked New Textile Minister Anand Sharma on the baseless arguments of textile loddy which has ignored tha fact 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. increase of Rs 80 per kg which reflects in cotton value to Rs 30000/per candy minimum. 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 an stage managed and ex-Union Textile Minister Dayanithi Maran is directly involved in this scam ” Tiwari added.

‘New Textile Minister Anand Sharma should admit that Cotton production has grown from a low of 225 lakhs bales to 330 lakhs 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 growths which is reason behind the present restriction of cotton export and when Indian cotton after lot of hard work and promotion by exporters have found a very stable and regular market of its cotton in foreign countries and Govt. should ensure that the markets created are not lost to competition due to faulty Govt. policies to protect handful textile mill owners .” It is alleged.

‘We need the urgent central intervention and demand to lift all export restriction of cotton bales and yarn too so that farmers get higher price to cotton ‘’Tiwari urged.