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Allowing cotton exports a good decision (India)

2012-5-4

Welcoming the decision of the Government to allow fresh Cotton Exports, Mr. M. Rafeeque Ahmed, President, Federation of Indian Export Organizations (FIEO) said that this is a good decision which has removed the uncertainty amongst exporters having substantial orders in hands.

Mr. Ahmed, however, cautioned for any shortfall to the domestic manufacturers of this important raw material which may affect export of value added products and thus less foreign exchange earnings.

FIEO Chief stated that there is need for a National Agriculture Production Policy. Instead of putting blanket ban on export of agro products, which spoil our image as reliabile supplier, we should allow export and regulate it through export tariff. Or Minimum Export Price and simultaneously also allow duty free import of quantity required, added Mr. Ahmed.

He said that unwavering stance on this issue may cause serious repercussions on the farmers as well as exporters. Mr. Rafique Ahmed said that exporters now look towards Commerce Minister to provide suitable relief to exports in his Foreign Trade Policy scheduled to be released shortly.

Exporters feel that the way Budget did not put focus on exports, which constitute to about 22% of GDP, the day may not be far when exports loose competitiveness and may not remain a viable economic activity.

Source:Federation of Indian Export Organizations (FIEO)
 
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