Thje Centre's sudden decision to ban cotton exports has been welcomed by the spinning and garmenting companies but for the small ginning and pressing units in Maharashtra, it is spelling bad news. They are anticipating at least 20 to 30 per cent decline in prices of their cotton inventory.
Dhule-based spinning unit owner, Mr Bharat Agarwal said that all the units are coming together and would soon form a common strategy to have the ban lifted. As an immediate protest measure, the units are considering a temporary halt to buy cotton from the market.
They will also request the Centre to create a reserve quota for cotton exports, so that ginning and pressing units, which are small-scale units could survive, he said.
“We don't understand the logic behind the ban. Today it is a free market economy, why should the government intervene? The ban will only benefit spinning and garmenting companies who will get cotton at low prices in local market but they export finished goods at international prices,” Mr Agarwal said.
Mr Ashish Gujarati, co-president of Khandesh Gin Press Industries and Traders Association, said the ginners in the State have at least 15 lakh bales (170 kg) in stock. If the prices collapse then they will incur heavy losses.
“The ban shows that there is no proper policy for cotton trade. What is required is a consistent policy for at least five years,” Mr Gujarati said.
Farmers unhappy
Cotton farmers are also unhappy with the ban and have decided to launch an agitation against the ban. The farmers are being led by Mr Raju Shetti, Member of Parliament and president of Swabhimani Party.
Mr Shetti said that farmers have already started protesting against the ban. In the coming days the fight would be taken to the streets and Parliament, he said.