The government will allow cotton exports without any restriction, Union commerce minister Anand Sharma said today (April 30, 2012), lifting a ban imposed last month by the world’s second-biggest producer after record overseas sales raised concerns about domestic supplies.
“A decision has been taken to remove suspension of cotton export registration and fresh registration will be allowed,” Mr Sharma said.
Mr Sharma also said the export situation will be reviewed on a fortnightly basis.
India has so far allowed 11.5 million bales of 170 kg for overseas sale in the current year from 1 October.
Domestic prices rose tpday on expectations fresh exports would be allowed, with the most heavily traded May cotton on the Multi Commodity Exchange ( MCX) up 1.43% at Rs17,720 ($340) per bale at 12:34 pm.
Traders said fresh supplies from India would arrive in a market where China, the world’s top buyer and its biggest customer, has already bought huge quantities from the United States.
Any new cotton exports in a global market of 8.9 million tonnes a year, according to US Department of Agriculture estimates, are more likely to go to neighbouring Bangladesh, they added.
“The matter is actively engaging the attention of government and the position is regularly reviewed,” Mr Sharma said.
The issue of cotton exports had put the commerce and farm ministries at loggerheads, with influential coalition ally Union farm minister Sharad Pawar asking the Prime Minister to lift the ban to help farmers.
The farm ministry has a different view of production and consumption from the textile ministry and its estimates suggest there could be a surplus of up to 2 million bales.
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“A decision has been taken to remove suspension of cotton export registration and fresh registration will be allowed,” Mr Sharma said.
Mr Sharma also said the export situation will be reviewed on a fortnightly basis.
India has so far allowed 11.5 million bales of 170 kg for overseas sale in the current year from 1 October.
Domestic prices rose tpday on expectations fresh exports would be allowed, with the most heavily traded May cotton on the Multi Commodity Exchange ( MCX) up 1.43% at Rs17,720 ($340) per bale at 12:34 pm.
Traders said fresh supplies from India would arrive in a market where China, the world’s top buyer and its biggest customer, has already bought huge quantities from the United States.
Any new cotton exports in a global market of 8.9 million tonnes a year, according to US Department of Agriculture estimates, are more likely to go to neighbouring Bangladesh, they added.
“The matter is actively engaging the attention of government and the position is regularly reviewed,” Mr Sharma said.
The issue of cotton exports had put the commerce and farm ministries at loggerheads, with influential coalition ally Union farm minister Sharad Pawar asking the Prime Minister to lift the ban to help farmers.
The farm ministry has a different view of production and consumption from the textile ministry and its estimates suggest there could be a surplus of up to 2 million bales.
....more info