The Government has decided to continue with the existing policy of allowing cotton exports without any restrictions.
This decision was taken after an Inter-Ministerial Committee comprising top officials from Commerce, Agriculture and Textiles Ministries reviewed the cotton scenario in the country recently.
The committee, comprising secretaries from the three Ministries took stock of the cotton situation, including production, arrivals, registration and exports, a Commerce Department release said.
“The Committee noted that the situation with respect to cotton availability, prices and export is satisfactory and decided that the current dispensation may continue.
The Committee has decided to keep a watch on the situation and meet as and when the situation warrants,” the statement said.
The Government had clamped down on cotton exports last March to ensure domestic availability and check spiralling prices.
However, following pressure from cotton growing States and the Agriculture Ministry, the ban was subsequently withdrawn and cotton exports were allowed after registration of contracts with the Directorate General of Foreign Trade.
Registrations rise
Meanwhile, cotton export registrations have seen a rise recently on hopes of higher Chinese demand.
Since the beginning of the year, export registrations have increased to 58 lakh bales from 38 lakh bales (of 170 kg each).
Trade sources expect India’s cotton exports to be not more than 8 million bales against 12.9 million bales shipped out last year.
The Cotton Corporation of India has estimated a production of 33. 4 lakh bales
India’s cotton exports are expected to be not more than 8 million bales against 12.9 million bales shipped out last year.
The Cotton Corporation of India has estimated production of 33.4 million bales pegging the domestic consumption at 26 million bales leaving an exportable surplus of 7 million bales.