Lok Sabha Question No. 1972 (UNSTARRED), answered on 2021-02-12
Subject: Export of Cotton
Ministry: TEXTILES
Asked by: S. Gnanathiraviam

## EXPORT OF COTTON

## 1972.  SHRI GNANATHIRAVIAM S.:

## Will the Minister of TEXTILES वस्त्र मंत्री

be pleased to state :

(a) whether it is a fact that the Cotton Corporation of India (CCI) plans to export at least 10 lakh bales of cotton during the current season, if so, the details thereof;

(b) whether it is also true that the CCI had procured 85 lakh bales of cotton at minimum support price in the current cotton season, if so, the details thereof;

(c) whether the CCI had stopped the purchase of cotton at MSP since the price of cotton continued to rise, if so, the details thereof;

(d)  whether  the  large  scale  export  of  cotton  will  affect  the  textile  units  across  the  country  including Tamil Nadu, if so, the details thereof;

(e) whether it is also true that the textile units in Tamil Nadu has been demanding to reduce the price of cotton in view of the COVID-19 pandemic; and

(f) if so, the details thereof and the steps taken by the Government in this regard?

## उत्तर

## ANSWER

## वस्त्र मंत्री ( श्रीमती स्मृतत ज़ूबिन इरानी )

## MINISTER OF TEXTILES (SMT. SMRITI ZUBIN IRANI)

(a): There is no plan of Cotton Corporation of India (CCI) to export 10 lakh bales of cotton during the  current  cotton  season.  However,  CCI  is  offering  its  cotton  for  export  on  daily  basis  through  eAuction.

(b): During current cotton season 2020-21, (from 1.10.2020 to 30.09.2021), as on 6 th February 2021, CCI  has  procured  90.87  lakh  bales  under  Minimum  Support  Price  (MSP)  operations.  State-wise procurement under MSP operations is annexed.

(c): CCI has not stopped the purchase of cotton at MSP. Further due to substantial increase in kapas rates during last three weeks, the ruling price of kapas are more than MSP rates in most of the cotton growing states  and  farmers  are  getting  better  price  for  their  produce  from  market.  Hence,  Minimum Support Price (MSP) intervention is not presently required in these states. However, CCI is procuring around 25,000 to 30,000 bales per day in the cotton growing areas wherever the prevailing kapas prices are ruling below MSP.

(d): India is net cotton surplus country wherein production is more than its consumption. As there is sufficient  availability  of  cotton  in  the  country,  export  of  surplus  available  cotton  may  not  affect  the textile units in the country. Rather, it will help the farmers to receive better price for their cotton.

(e) & (f): There is no such information available regarding demand for reducing the price of cotton in Tamilnadu due to COVID-19 Pandemic.

## Annexure

|             | Crop Year 2020-21                                                                     | Crop Year 2020-21                                                    | Crop Year 2020-21                           |
|-------------|---------------------------------------------------------------------------------------|----------------------------------------------------------------------|---------------------------------------------|
| State       | Production of Cotton (in lakh bales) as per CoCPC meeting (Projected upto 30.09.2021) | Procurement of cotton (in lakh bales) under MSP by CCI upto 06.02.21 | %of procurement under MSP (upto 06.02.2021) |
| Punjab      | 12.00                                                                                 | 5.38                                                                 | 44.83%                                      |
| Haryana     | 25.00                                                                                 | 10.52                                                                | 42.08%                                      |
| Rajasthan   | 27.00                                                                                 | 9.11                                                                 | 33.74%                                      |
| Gujarat     | 90.50                                                                                 | 4.05                                                                 | 4.48%                                       |
| Maharashtra | 86.00                                                                                 | 17.45                                                                | 20.29%                                      |
| MP          | 21.00                                                                                 | 4.39                                                                 | 20.90%                                      |
| Telangana   | 60.00                                                                                 | 33.33                                                                | 55.55%                                      |
| AP          | 18.00                                                                                 | 3.40                                                                 | 18.89%                                      |
| Karnataka   | 20.00                                                                                 | 1.26                                                                 | 6.30%                                       |
| Tamil Nadu  | 5.00                                                                                  | 0.00                                                                 | -                                           |
| Odisha      | 4.50                                                                                  | 1.98                                                                 | 44.00%                                      |
| Others      | 2.00                                                                                  | 0.00                                                                 | -                                           |
| Total       | 371.00                                                                                | 90.87                                                                | 24.49%                                      |