20-Aug-2013
India said yesterday it will export 20 lakh bales of cotton to Bangladesh in the 2013-14 cotton season starting in October, even if a ban is imposed on such exports.
The two countries also exchanged the final draft of a cotton purchase deal and signed a textiles sector collaboration agreement after a meeting between visiting Bangladesh’s Textiles and Jute Minister Abdul Latif Siddique and Indian Textiles Minister K Sambasiva Rao here.
There is, however, no official word from either side as to when the agreement on cotton purchase will be finalised and signed.
“Under the proposed cotton purchase agreement, I have assured Bangladesh’s textiles minister that Bangladeshi textiles mills will get a smooth flow of cotton and would have no difficulties in sourcing it from India even if we have to ban cotton exports to other countries,” Rao told journalists.
He said Bangladesh had sought a minimum of 20 lakh bales and “we have assured them that we will give them that much and not ban it”.
India’s cotton production was 340 lakh bales (170 kg each) last year and consumption 270 lakh bales, leaving a surplus of 70 lakh bales, Rao said. The cotton season in India runs between October and September.
Rao said, “It was in India’s interest that Bangladesh becomes strong as otherwise infiltration of people from that country will continue.”
“As regards the cotton purchase agreement, the final drafts have been exchanged between the three sides — the textiles ministry, Cotton Corporation of India (CCI) and Trading Corporation of Bangladesh (TCB),” Rao said.
Under the draft pact, private sectors of the two countries and the CCI and the TCB will engage in exports and imports.
“In case of imposition of restriction on export of cotton by India at any time, the CCI and TCB will determine through consultation the remaining volume of cotton exports in the season,” an Indian textiles ministry official said.
At present, exports of cotton are in ‘open general licence’ category with registration of export contracts by the Indian Directorate General of Foreign Trade.
India’s cotton exports are estimated at around 100 lakh bales in the current cotton season. In the previous season, the country exported 129 lakh bales.
The textiles sector collaboration pact came into effect yesterday and will remain in force for a period of five years. The agreement will be reviewed in every two years, the official said.
“We have signed the collaboration agreement which would act as a major trade facilitation mechanism, by establishing institutional mechanism for collaboration through Joint Working Group,” Rao said.
Under the textile cooperation pact, India and Bangladesh would cooperate in different areas like fashion technology through exchange programmes, skill exchange through institutions and upgradation and enhancement of productivity, efficiency, management techniques and research and development.
The pact was signed by Indian Textiles Secretary Zohra Chatterjee and Bangladesh Textiles Secretary Ashraful Moqbul.
Also, the two sides discussed about establishment of a successor organisation for the International Jute Study Group in Dhaka through joint efforts at the UNCTAD.
India and Bangladesh together account for nearly 94 percent of the world’s production of jute and allied fibre.
Source:- thedailystar.net
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