'Raw Cotton' included in
Vishesh Krishi and Gram Udyog Yojana (VKGUY) - breather
for Indian Cotton Exporters
Cotton Association of India (CAI) sincerely thanks
the Ministry of Commerce and Industry, Government
of India for granting to the cotton exporters,
much awaited relief by including 'Raw Cotton'
in VKGUY. It may be recalled that CAI had made
several representations to the various Ministries
thereby drawing their attention to the desperate
situation on the cotton exports front during the
current season and urging the Government to save
the cotton exporters by granting appropriate export
incentives like re-introduction of Duty Drawback
at an increased rate of 2%, inclusion of cotton
in VKGUY, etc. We also thank the Ministry of Agriculture
and Ministry of Textiles for their support to
the cotton exporters at this critical juncture.
The inclusion of 'Raw Cotton' in VKGUY will go
a long way to revive cotton exports from India
and secure India's market share in the global
cotton market. This move may facilitate movement
of cotton in the supply chain and help declogging
of huge stocks in the market. It is also expected
to open new marketing channels and create fresh
demand for Indian Cotton which will be in the
overall interest of a large number of our farmers
who would stand to benefit from better realisation
of prices as determined by market forces. There
is enough surplus cotton in the Country after
meeting the domestic requirement and, therefore,
encouraging exports by the Government is a step
in the right direction.
