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Cotton review releases 1.9m bales for export (India)

2012-4-17
The Indian government is allowing the shipment of another 1.9m bales of cotton after reviewing applications that had already been registered before it introduced a ban on raw cotton exports last month.

Up to yesterday (12 April) the registration certificates of around 1m bales had been revalidated for export, with another 0.9m bales due to be cleared by 17 April at the latest.

India, the world's second largest producer of cotton, accounting for around 22% of global output, introduced a surprise ban on raw cotton exports on 5 March.

This was followed by a partial U-turn a week later to allow the shipment of pending orders. Initial priority was given to cotton that had been pending for export into Bangladesh, Myanmar, Pakistan, Nepal and Bhutan. The next priority was given to cotton that had been handed over to customs.

The government today (13 April) said exports of the 1.9m bales "would give a fresh impetus to cotton prices and would benefit both farmers and exporters."

However, no plans have so far been made to release new export registration certificates to allow further cotton exports.

Unconfirmed reports say ministers have decided not to allow fresh exports in the 2011-12 marketing year, which ends in September, to ensure adequate domestic supplies. But this could depend on the latest production figures, which are due to be reviewed next week.
Source:just-style
 
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