Question : Export of Cotton

(a) whether it is a fact that the Cotton Corporation of India (CCI) plans to export at least 10 lakh bales of cotton during the current season, if so, the details thereof;

(b) whether it is also true that the CCI had procured 85 lakh bales of cotton at minimum support price in the current cotton season, if so, the details thereof;

(c) whether the CCI had stopped the purchase of cotton at MSP since the price of cotton continued to rise, if so, the details thereof;

(d) whether the large scale export of cotton will affect the textile units across the country including Tamil Nadu, if so, the details thereof;

(e) whether it is also true that the textile units in Tamil Nadu has been demanding to reduce the price of cotton in view of the COVID-19 pandemic; and

(f) if so, the details thereof and the steps taken by the Government in this regard?

Answer given by the minister


MINISTER OF TEXTILES
(SMT. SMRITI ZUBIN IRANI)


(a): There is no plan of Cotton Corporation of India (CCI) to export 10 lakh bales of cotton during the current cotton season. However, CCI is offering its cotton for export on daily basis through e-Auction.

(b): During current cotton season 2020-21, (from 1.10.2020 to 30.09.2021), as on 6thFebruary 2021, CCI has procured 90.87 lakh bales under Minimum Support Price (MSP) operations. State-wise procurement under MSP operations is annexed.

(c): CCI has not stopped the purchase of cotton at MSP. Further due to substantial increase in kapas rates during last three weeks, the ruling price of kapas are more than MSP rates in most of the cotton growing states and farmers are getting better price for their produce from market. Hence, Minimum Support Price (MSP) intervention is not presently required in these states. However, CCI is procuring around 25,000 to 30,000 bales per day in the cotton growing areas wherever the prevailing kapas prices are ruling below MSP.

(d): India is net cotton surplus country wherein production is more than its consumption. As there is sufficient availability of cotton in the country, export of surplus available cotton may not affect the textile units in the country. Rather, it will help the farmers to receive better price for their cotton.

(e) & (f): There is no such information available regarding demand for reducing the price of cotton in Tamilnadu due to COVID-19 Pandemic.

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