Tuesday, 31 May 2011

Confederation of Indian Textile Industry (CITI) is misleading -VJAS


Cotton Crisis - Confederation of Indian Textile Industry (CITI) is misleading
Nagpur – June 1, 2011
Vidarbha cotton growing farmers advocacy group Vidarbha Janandolan Samiti(VJAS) has strongly objected the statement of Mr. Shishir Jaipuria, Chairman of the Confederation of Indian Textile Industry (CITI) that the export of 5.5 million bales of cotton from India during the early part of this cotton year has created an artificial cotton shortage in India.
“CITI statement is misleading and baseless when Indian regulatory authorities have confirmed that there is surplus stock of at least 50 lakhs bales and textile has given it’s node to the demand of agriculture and commerce ministry demand of additional permission of 15 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
“CITI 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 Union Textile Minister Dayanithi Maran has a allaowed textile cartel to include the by-product banned ” Tiwari said..
“CITI is keeping salient of the fact that 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 Union Textile Minister Dayanithi Maran is directly involved in this scam ” Tiwari added.
‘CITI should admit that Cotton production has grown from a low of 225 lac bales to 330 lac 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.
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Monday, 30 May 2011

Cotton farmers Burdened by Early Rains, Govt policy-Times of India


Cotton farmers Burdened by Early Rains, Govt policy

"Together, the farmers and traders have suffered a loss of Rs 20,000 crore thanks to the unfriendly cotton policy of the Union government," said Kishore Tiwari of the Vidarbha Jan Andolan Samiti. "Global prices were at an all-time high, but the government did not allow exports. So farmers are traders were forced to sell at 30% less than the international price," he explained. Tiwari has urged the government to lift all curbs on cotton exports to rescue the farmers.
NAGPUR: The early onset of monsoons has proved to be a dampener for the cotton trade as prices came down further on expectations of a better supply in the forthcoming season. Timely rains may bring good news for farmers who may get to start their activities early and hope to reap sooner. But, on the other hand, traders are left bleeding as the prices crashed when they were sitting on a huge stock purchased at a higher rate as cotton prices had touched a peak this year.

Commodity analysts say that there is a bearish outlook for cotton in the next year which means the farmers may not get a very high rate. The April 2012 contract at National Commodity and Derivative Exchange (NCDEX) is quoted at Rs 792 per 20 kg, which comes to Rs 3960 a quintal. If futures are taken as an indication, the rates may open at lower note at the start of the harvest season in the next year.
Fall of cotton
Year
February
March
April
May
2011
7,000
6,500
5,000-4,500
3,500-3000
2010
2600
3200
3200
3200-3500

(Source: Traders in the region; the table shows how the rates (rupees per quintal) increased with time last year but the trend was reverse in 2011)

Rains striking early on the Kerala coast has led to the likelihood of the sowing season for the Kharif crop starting well or even before time. A better outlook for the cotton crop due to good rains has led to a second round of battering for this commodity's prices. The government's inaction on relaxing the export cap from 55 lakh bales at present also acted as a catalyst.
Currently cotton is being quoted in the range of Rs 3,000 to Rs 3,500 a quintal in the market yards with the situation being worse a fortnight ago when the prices were below the Rs 3,000 mark.
There are estimates of a considerable jump in the supply in the coming season as the area under cotton cultivation is expected to go up by 20% from last year's tally of 11 million hectares. Higher the supply, lesser are the prices.
Cotton prices had touched an all-time high of Rs 7,000 a quintal, in January-February this year which was the peak of the season. Strangely the rates tumbled subsequently, touching Rs 4,500 by April and sliding to a new low of less than Rs 3,000 a fortnight ago. The rates have finally settled at Rs 3,500. It was only an expectation of better crop which triggered the fall in March, but normally it was too early for the markets to react to such an indication.

Traders find it a strange phenomenon. Normally rates of any agricultural commodity are on the higher side as the season ends and ease only when the fresh crop arrives. The fresh cotton crop is still five months away and the rates are already subdued. In May last year, cotton was quoted at around Rs 3500 a quintal, an increase of Rs 600 from the start of the season.
Even as there have been conflicting reports on this input, sources say that some of the farmers too had held on to their stocks hoping to fetch a better rate to only face a crash. Undoubtedly, traders are in a bind as they are sitting on huge stock purchased at a higher rate.
"Together, the farmers and traders have suffered a loss of Rs 20,000 crore thanks to the unfriendly cotton policy of the Union government," said Kishore Tiwari of the Vidarbha Jan Andolan Samiti. "Global prices were at an all-time high, but the government did not allow exports. So farmers are traders were forced to sell at 30% less than the international price," he explained.

Tiwari has urged the government to lift all curbs on cotton exports to rescue the farmers.

Sunday, 29 May 2011

Indian cotton farmers lost more than Rs.20,000 crore due to ban on cotton export -Merinews.com


merinews.com

 

 
Indian cotton farmers lost more than Rs.20,000 crore due to ban on cotton export
 
 
Mon, May 30, 2011 09:53:23 IST
 
THE COMPLETE apathy of the Indian government towards Indian cotton farmers has resulted in record heavy financial losses incurred due to wrong export policy to the tune of more than Rs.20,000 as per initial estimates, and may increase further if corrective steps are not taken immediately as 33 million bales produced this year by Indian farmers and local traders got the price that's less than 30 per cent of prevailing international price that time and now after the prices crashed in the middle of April this year, the loss has increased.
 
"The undue delay in decision and panic of further price downward correction in farmers and local traders has already done the damaged any corrective step of relaxing further export cap will only benefit market manipulator as it was part of conspiracy planed and strategicmove by Textile Minister Dayanidhi Maranto protect financial textile lobby and get the cotton bales cheaper rate ,has done damaged to and more than 1 billion cotton farmers in cotton growing state of India that include Mahrashtra, Gujrath, Andhra,Punjab, Rajthan, Karnataka, M.P. and central government.should provide bail out pakage to the farmers who suffered heavy losses due wrong export policies of the central government,” said Kishore Tiwari of Vidarbha Janandolan Samiti (VJAS).
 
“The year of record cultivation of cotton in 11 million hectors and record yield of33 million cotton bales has been year record financial losses as most of the year. Indian cotton growers were forced to sell coton 30 per cent cheaper than international market due to export cap of 55 lakhs bales when as per official estimate it was clear that additional 60 lakhs bales surplus in India as against domestic requirement of 220 lakhs bales but it was PMO and textile ministry kept uncertainties and not allowed to increase additional export since February 2011," said Tiwari.
 
He also said that even after the frequent intervention of Agriculture Minister by writing letters directly to Indian prime minister since April 8, 2011, chief ministers of Maharashtra, Gujarat, Andhra and Karnataka along with more than 110 MPs joined by Cotton Association of India (CAI), The Associated Chambers of Commerce and Industry of India (ASSOCHAM) and farm activists from all over India lastly by national political parties including Congress, NCP and BJP but textile ministry controlled by touts managed to keep the cap of 55 lakhs cotton bales as against the last year export of 84 lakhs cotton bales intact resulting in farmers holding the stock till Monday to sell it at throw away prices as monsoon is coming all procurement centre are declared that that last week was last week of procurement resulting accumulated net losses more the Rs. 20,000 crore to more than 10 million cotton growers and local traders that has added further gloom and despair to dying cotton growing agrarian community inviting much more farm suicides in near future," said Tiwari.
 
“We welcome the assurance given by Textile Minister Dayanidhi Maran to Gujarat congress delegation who met on May 19 pressing hard demand increase in Cotton export quota andit was reported that quoting Gujarat Congress’s statement, the delegation demanded approval of 1.5 million bale export of Cotton, which “was accepted by Textile Minister Dayanidhi Maran and he was to call Cotton Advisory Board’s meeting to give legitimate permission for additionalexport of 15 lakh bale but it hoax as till date CAB meeting has not being called moreover in between PMO issued the statement supporting the action of textile ministry to put export restriction on cotton bales, cotton yarns and even on cotton westthat’s clear indication of having textile nexus with PMO too, we are victim wrong policies of UPA and NDA as itis first time free import started after lifting import restrictions in 2004 even WTO deadline was 2008 by then NDA government at the centre which allowed record 200 lakhs bales at much cheaper price than domestic market inviting thousands of farm suicides and now imposition of export restrictions are killing the cotton farmers hence we need economical protection to distress cotton farmers as given by USA," Tiwari added.
 
"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 is an increase of Rs 32/mtr which is Rs 160/- per kg which in terms of candy is about Rs 60000 and present ban on export has brought back cotton prices to the level of April 2010 which is artificial an stage managed and Union Textile Minister Dayanithi Maran is directly involved in this scam," Tiwari added.
 
"Maharashtra farmers are agitating since October 2010 for lifting of export ban on cotton. Now, the same demand is being echoed nationally but strong textile lobby is not allowing the rightful much needed decision is taken and they till lobbying hard to avoid official permission the additional export of cotton bales is granted and silent of PMO is much more irritating hence we have knocked the door of UPA convener Smt.Sonia Gandhi but nothing has resulted as on today,” Tiwari added.
 
"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.


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