“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 ministry has given it’s nod 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 have been slashed to 50 per cent in a month where as uncertainties and unjust quantitative restriction has always allowed the textile cartel to get cheaper cotton by 30 per cent. This is part of the textile lobby to get cotton export curtailed 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 the tune of Rs. 20,000 crore and losses are likely to be more if Indian government 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,” said Tiwari.
“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. This 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.