The issue of whether to cancel 1ndia’s cotton export line has been debated for a long time and is becoming more and more tangled. The 1ndian Cotton Advisory Board (CAB) has lowered its 2010-11 production forecast to 31.2 million bales (1 bales = 170 kg), lower than the 32.9 million bales estimated in February
since the Ministry of agriculture wants to cancel the 5.5 million bales of cotton export line in 2010-11 (starting in October) to help farmers, this issue has become the focus of debate. At the same time, the textile Ministry argued that the cancellation of exports would lead to further price increases in the domestic market. Recently, the Advisory Committee announced that due to the decrease in the number of market arrivals, the production forecast has been lowered. The new estimate is 5.78% higher than last year’s 29.5 million bales. The second estimate of the Ministry of agriculture shows that the cotton output in 2010-11 will be 33.9 million bales, almost 40% higher than that of last year. Ministry of agriculture officials said the focus of the dispute between the textile Ministry and the Ministry of agriculture was on cotton production and the number of cotton delivered
the government has capped this year’s cotton export to 5.5 million bales. Last year, 1ndia exported 8.3 million bales of cotton, although the output decreased. 1ndian cotton company said that from January to February, the price of various varieties of cotton jumped 38%