Cotton Exports Shouldn''t be Allowed Beyond 55 lakh Bales: CITI.

New Delhi, (PTI) Amidst rising cotton prices, the textiles industry today urged the government not to allow shipments of the natural fibre beyond the current ceiling of 55 lakh bales, in a bid to cool down its prices in the domestic market.

"Cotton exports during the cotton year may be restricted to the quantity of 55 lakh bales already announced by the government," Confederation of Indian Textile Industry (CITI) today said in a statement.

The cotton season runs from October through September.

The government had allowed export of 55 lakh bales (170 kg each) of cotton for the current season without duty. Cotton prices are rising both in the international and domestic markets due to droughts and floods wiping out a lot of the cotton harvest in China and Pakistan.

CITI also said that if registered export contracts remain unshipped within the stipulated last date of 15th December 2010, these may not be allowed for exports or fresh registration at least for the next two months till the time cotton arrivals would pick up in the domestic market.

Cotton prices have increased sharply in the past few months. According to industry experts, prices of natural fibre are ruling at about Rs 44,000 compared to Rs 23,000 in the same period last year.

CITI said that the country has cotton availability at present and efforts should be made to increase the production capacity for yarn and fabrics to consume entire cotton.

There are projections of a record production of cotton at 325 lakh bales in 2010-11 against the estimated demand of 266 lakh bales.

Besides, the industry has requested the Commerce Ministry to provide sufficient export incentives to the value-added segments, until the overseas markets are able to absorb the higher cost of such items.

Source : news.in.msn.com