CCEA defers decision on cotton distribution policy

New Delhi: The CCEA today deferred a decision on the cotton distribution policy, which proposes to impose a 10 percent duty on shipments of the commodity beyond a declared exportable surplus."The decision on cotton distribution policy has been deferred," Information and Broadcasting Minister Manish Tewari told reporters after a meeting of the Cabinet Committee on Economic Affairs (CCEA).[caption id="attachment_1105179" align="alignleft" width="380"] Cotton export policy. AFP[/caption]The matter has been referred to a group of ministers including commerce, textiles and agriculture, following differences of opinion among various ministries, sources said.The proposal by the textiles ministry aims to put in place a stable, transparent, production and tariff driven cotton market to balance the interests of stakeholders in the entire value chain.Under the policy, the ministry had recommended imposition of an export duty of 10 percent ad valorem at freight on board (FOB) or Rs 10,000 per tonne, whichever is less, for all cotton exports exceeding the declared/revised exportable surplus.The duty has been proposed to encourage shipments of value-added textiles and contain the current account deficit.PTI