GOVERNMENT OF INDIA

MINISTRY OF TEXTILES

LOK SABHA

UNSTARRED QUESTION NO: 3776

ANSWERED ON:02.12.2010

COTTON PRICES

HARSH VARDHAN

(a) whether prices of cotton in international market were the highest during September-October, 2010 as compared to previous years;

(b) if so, the facts in this regard;

(c) the gap between the prices of cotton in international market and domestic market during the said period;

(d) whether permission for export of cotton has been granted to take advantage of the increased prices of cotton in international market;

(e) if so, the reaction of the Government thereof; and

(f) the additional foreign exchange likely to be earned as a result of such export?

ANSWER

MINISTER OF THE STATE IN THE MINISTRY OF TEXTILES (SMT. PANABAAKA LAKSHMI)

(a) to (f): Yes Madam, International cotton prices reached a peak value of US 172 cents/lb on November 10, 2010 as compared to us 72.45 cents/lb on 2009-10. The gap between prices of cotton on International Market and domestic Market varied from us 40 cents/lb to US 22 cents/lb in November, 2010. Government of India has put in the following policy measures to ensure cotton security for the cotton season 2010 -11 to address issues of price volatility and supply side disruptions:

i. Actual exports would commence from 1.11.2010; and

ii.The exportable surplus was identified as 55 lakh bales;