Cotton Market Booms Due to Lack of ‘Policy Measures’
The Indian cotton market is at peace. Three months of respite from government meddling has allowed the business to stagger back on its feet. And everyone is making money – farmers, ginners, traders and millers.
Between March and April, the market was rocked by a series of export bans, partial roll-backs, and restrictive rules that battered exports, sent prices plummeting, and roused farmers, MPs and chief ministers of four states into raising a massive stink. Commerce and textiles ministries beat a hasty retreat after the prime minister himself waded in. And we haven’t heard a peep out of it since.
It was cotton’s lucky break. Finally, its price is being negotiated by physical demand and supply. In the absence of “policy measures”, no one is robbing Peter to benefit Paul.