Commerce ministry may reverse ban on cotton exports

NEW DELHI: The commerce ministry may reverse the ban on cotton exports imposed earlier this week following strong protest from Agriculture Minister Sharad Pawar.

“The commerce department is contemplating lifting the ban on cotton exports... A decision will be taken soon,” Commerce Secretary Rahul Khullar told ET after a meeting of a group of ministers, headed by Finance Minister Pranab Mukherjee, on the issue.

The meeting was hastily summoned by Prime Minister Manmohan Singh after Pawar made it loud and clear that he was not consulted by the commerce ministry, officials said. It appears to have decided to reverse the ban.

Textiles Secretary Kiran Dhingra, however, said the meeting was inconclusive. “Further discussion is needed. The next meeting will be held as soon as possible,” he told reporters.

The Directorate General of Foreign Trade under the commerce department imposed a ban on cotton exports on Monday, after exports rose to 94 lakh bales against an exportable surplus of 84 lakh bales calculated by the cotton advisory board based on supply and demand.