The Group of Ministers (GoM) will meet on 9 March to discuss the issue of cotton exports, Textiles Secretary Rita Menon said on Tuesday.
The move comes in response to sharp criticism from the industry and political figures such as Gujarat Chief Minister Narendra Modi and Union Minister for Agriculture Sharad Pawar against the Commerce Ministry’s decision on Monday to ban all cotton exports immediately.
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According to Menon, the decision to ban exports was taken on the basis of a policy approach where exports are decided on the basis of demand estimates.
“We have abided by the GoM recommendation to restrict cotton export,” she added.
Earlier today, Pawar said he has written to Prime Minister Manmohan Singh seeking him to revoke the ban on cotton exports as he was not consulted.
"I was kept in dark on the issue. I came to know about this only after a notification was issued by DGFT yesterday," Pawar told reporters on the sidelines of ICAR conference.
He added that the decision should have been taken after proper consultations either in the Cabinet Committee on Economic Affairs or Cabinet Committee on Prices, like it is done in the case of wheat and sugar.
Gujarat Chief Minister Narendra Modi has also written to the Prime Minister that he was “shocked” over the decision that would prove “disastrous" for farmers. Gujarat is one of India’s largest producers of cotton.
Pawar too reiterated that the decision would impact lakhs of farmers. “The cotton growers in Gujarat, Andhra Pradesh and Madhya Pradesh are in great distress as traders have stopped buying cotton from them after the decision,” he added.
The Directorate General of Foreign Trade on Monday issued a notification on Monday immediately banning export cotton till further orders in a bid to boost domestic supply.
“The exports against registration certificates already issued would also be prohibited,” the notification added.
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