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Cotton export policy flip-flop behind fluctuation of cotton prices
It is obvious that Indian cotton production and supply are increasing and decreasing due to the Indian Government imposed blanket ban on cotton export, and as a result hopeless traders are forcibly..

NOBODY WAS able understand the move of the commerce ministry to ban cotton export when domestic demand is just 20 million bales as against national production of 35 million bales. There was no reason to put restrictions as it was not proposed either by the textile ministry or the agriculture ministry, when the interest of domestic textile mills is fully protected.

The bservations of the fact finding committee of GOM and the protest by the chief ministers of Maharashtra, Gujarat and Andhra Pradesh have exposed the on going massive corruption in commerce ministry, which is till continuing even after a huge cry was made, and it is now a matter of concern as DGFT, even after lifting the export ban, is not allowing fresh cotton export. This has resulted in damage to cotton trade as cotton prices plummeted to record a new low in the international market recently.

It has now been officially reported that a bullish trend in the commodity's prices last year had left this sector harried, which in 2011-12, lobbied for the rates to come down. Exports were banned in March to bring down domestic rates. Last week, when the ban was lifted, it was with strict quantitative restrictions. The brief upswing was again reversed as the traders eventually saw the fine print of the notification.

The hostile cotton export policy and frequent flip-flop by DGFT has exposed the weak face of the UPA government in which corruption has powered progressive reforms, free trade, and open economy promoted.

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