Govt to Allocate Cotton Export Quota Tomorrow.

The government will reopen from tomorrow opportunity for cotton exports, allocating specific quantity for traders, subject to overall ceiling of 2.5 million bales. In the wake of high domestic cotton prices, the government had fixed an export limit of 5.5 million bales (of 170 kg each) for the current season (October 2010-September 2011).

While the exporters had earlier got the registrations from the Textile Commissioner, the actual exports did not exceed three million bales.

Meanwhile, the administration of the exports was shifted from the Textile Commissioner to the Directorate General of Foreign Trade (DGFT), an arm of the Commerce Ministry responsible for trade related matters.

DGFT reopened registrations for the balance 2.5 million cotton bales. These closed on January 6.

"Allocations will be done on Monday," Commerce Secretary Rahul Khullar said, adding that traders could begin exports, immediately after producing the necessary documents.

"Please produce your contracts and from January 11, the window opens for exports," he said.

A group of ministers had allowed 5.5 million bales for exports during the cotton season 2010-11, but exporters failed to ship the entire quantity after unseasonal rains delayed arrivals in the spot market.

Disruption in production of the natural fibre in major growing countries like the US, China and Pakistan due to adverse conditions has pushed the demand for Indian cotton in the international market.

India is likely to produce more than 325 lakh bales of cotton in 2010-11, higher than last year's 295 lakh bales. The textiles industry has been clamouring for imposition of restrictions on exports of cotton and cotton yarn, arguing that high prices are making their operations un-viable.

Source : deccanherald.com