Monday, May 7, 2012

Fresh notification on cotton export disappoints farmers -Merinews.com


Fresh notification on cotton export disappoints farmers  -Merinews.com
 Last week only, three million cotton farmers of Vidarbha, who are facing crop losses and committing suicides at the rate of three farmers a day, had welcomed the commerce minister Anand Sharma's announcement that the government has decided to withdraw the ban. But fresh notification has brought only gloom to shatter their dreams, alleged a farm activist, Kishore Tiwari.
THE UPA government’s flip-flop policy on free cotton export under Open General License (OGL) continues even after PMO’s intervention as Director General of Foreign Trade (DGFT) issued fresh Notification No. 113 (RE-2010)/2009-14 on 4th May, 2012 imposing fresh quota for revalidation of pending RCs
This will not allow any further cotton export as main exporter will not permit exports while fresh exporter will get peanuts and once again such conditional lifting of cotton export ban by the union commerce and industry minister is nothing but eyewash. The DGFT notification issued on yesterday has disappointed exporters, traders and cotton farmers of the country, opined president of Vidarbha Jan Andolan Samiti (VJAS) Kishore Tiwari.

These are fresh stringent conditions for the registration introduced by DGFT:

An exporter can apply for one RC at a time for a maximum quantity of 10,000 bales (1 bale=170kg) or actual quantity exported in the current cotton season, whichever is less. Exporters who have exported up to 1500 bales during current cotton season and newcomers (a new comer is an exporter who has not exported cotton in the current cotton season) can apply “up to 1500 bales”. Eligibility to apply for a subsequent RC will be on completion of at least 50% of the exports against the RC obtained now under this notification (exporters would be required to submit the documentary proof of such exports to the concerned RAs along with the application for issue of new RC).

For ease of calculation, RC holders are encouraged to apply in next higher multiples of 10. (For example an exporter who has exported 1387 bales during current cotton season is encouraged to apply for 1390 bales).

It is reiterated that revalidation of Registration Certificates will not be permitted as mentioned in para 3 of Public notice 102 of 16th March 2012.

"We demand blanket lifting of export ban under free export of raw cotton under open general license that can save debt trapped seven million farmers of India," said Tiwari.

Tiwari demanded a CBI probe into the circumstances that forced to take the ill-motivated decision to enforce a fresh ban on the cotton export in the light of the revelation of the union agriculture minister Sharad Pawar, observations of the fact finding committee of GOM and the protest by the chief ministers of Maharashtra, Gujarat and Andhra Pradesh. He has also urged the PM to sack Sharma for misleading the government and public.

"Last week only, three million cotton farmers of Vidarbha, who are facing crop losses and committing suicides at the rate of three farmers a day, had welcomed the commerce minister Anand Sharma's announcement that the government has decided to withdraw the ban. But fresh notification has brought only gloom to shatter their dreams," Tiwari said, adding that the minister misled the media and innocent farmers.

"It is highly immoral and illegal hence we urge the PM to review the notification and bring back pre-export ban conditions so that cotton export is protected. If UPA Government has problem with the growth of cotton export and want to protect textile cartel then they should buy cotton at international rates through its agencies like NAFED and CCI," Tiwari said, adding, "It would help protect the farmers who are forced to sell cotton at throw away prices to local dealers.”

"Domestic demand is just 20 million bales as against national production of 35 million bales. There is no reason to put restrictions when interests of domestic textile mills are fully protected," Tiwari pointed out
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