State to knock at Centre's door for lifting of ban on cotton exports

Chief minister Prithviraj Chavan will soon hold a meeting to review the situation arising out of curbs imposed by the Union government on export of cotton so as to prepare a firm proposal for seeking restarting of the exports, state agriculture minister Radhakrishna Vikhe Patil said here on Saturday.

The capping of exports at 55 lakh bales this year had led to a slide in cotton prices in domestic markets from a high of Rs 7,000 a quintal few months ago to the current around Rs 3,000 hitting farmers mainly in distressed Vidarbha who were hoping for a good earning after several years of slack market. With major cotton producers like the US, China and Pakistan registering low production last season, the international demand and prices were very attractive, However, the Union government put curbs on exports. Only 55 lakh bales were allowed to be exported when in the previous year 84 lakh bales were exported. Farm activists alleged that the export cap was put in order to favour the textile sector so that it could get cheaper raw material.

Vikhe-Patil, who was in the city for inaugurating a two-day agriculture workshop arranged by the Nagpur Zilla Parishad, said Chavan was apprised of the matter and would be using his good offices in New Delhi to resume the exports. The agriculture minister said that a state-level meeting to finalize preparations for the kharif season would be held in Pune on May 21 which will be attended by Chavan and ministers and secretaries of the department concerned. Till last year, such meetings were held at each division level because of differing crop patterns. But this time, crop planning meetings were held at district level and a centralized meeting to wrap up the farming kharif plan will be held at Pune.

Meanwhile, Vikhe-Patil said there was no dearth of fertilizers and seeds for the kharif operations beginning next month. Rs 400 crore has been provided for fertilizers' procurement and distribution while 80% of the seeds have been requisitioned. With the ever-growing demand for Bt cotton seeds, some shortage is anticipated, he said. As expected, the area under cotton in the state would shoot up from last year's 37 lakh hectares to 45 lakh hectares in the ensuing season, said the minister. Maharashtra has the largest area in the country under cotton though till date it is behind Gujarat and Punjab in yields.

Asked if the dissolution of Maharashtra state cooperative bank would hamper crop loan distribution for the coming khaif season, Vikhe-Patil said no crisis is anticipated but to be on the safer side, the state would take up the matter with Nabard and ask for alternative avenues, if required. The chief minister would also meet nationalized banks' representatives soon to address complaints that agriculture advances were not being cleared at the required pace.

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