New Delhi, Sep 5 (Calcutta Tube) The Federation of Indian Export Organisations (FIEO) Saturday urged the government to restrict cotton exports so that adequate quantity of raw materials is made available for the domestic textiles industry.
‘The government should restrict exports of cotton at 55 lakh bales,’ FIEO President A. Sakthivel said in a statement.
He said the allocated quantity should be exported over a period of time so that best quality is available for domestic industry while ensuring a sharp rise in domestic cotton prices.
Sakthivel pointed out that value added exports like garments earn Rs.750 per kg as against Rs.75 per kg for raw cotton.
Earlier in the day, Commerce Secretary Rahul Khullar said the government would allow cotton exports of up to 55 lakh bales in 2010-11. Free export of surplus cotton will begin from Oct 1.
However, the government has announced that the exportable quantity of cotton would be reviewed on Nov 15.