The freeing of sugar and cotton exports by the Union government may not benefit producers and farmers this year. The decision has been made too late.
In the case of sugar, a Reuters report on Thursday indicated that prices in global markets softened after the announcement. Chances are that if exports cross the 4 million tonnes mark, export clamps may return. In any case, the current season will be over soon.
A different factor operates in the case of the cotton market. One of the big consumers of Indian cotton is China. Traders from that country are showing reluctance to buy Indian cotton due to uncertainties associated with exports.
While no malfeasance should be read into the manner in which the decisions on the subject were delayed, a better sense of timing would have helped the country’s farmers and producers get better returns in markets abroad.