ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846
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COTTON-Crisis of Plenty Unlikely

WHAT is one to make of the Shetkari Sangathana's representation to the union textile minister Ram Niwas Mirdha pleading for an export quota of 10 lakh bales of cotton to 'avert distress sales by farmers'? The plea has been based on an estimated record crop of 120 lakh bales in 1989-90, carryover stock of 25 lakh bales and import of two lakh bales recently allowed under OGL, raising total availability to 147 lakh bales against domestic consumption of about 100 lakh bales. The supply-demand equation worked out by the Shetkari Sangathana is unlikely to command much credibility as it is based on highly questionable assumptions.

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