Cotton traders agree on exports cap.

COIMBATORE: Cotton traders have agreed to follow the Cotton Advisory Board’s crop estimate for the coming season and limit exports to 49.5 lakh bales even though global prices are at two-year highs. Free exports in 2009-10 had led to a steep rise in local prices, raising raw material costs for textile companies.

“We have accepted CAB estimates and agreed that only exportable surplus will go so that the domestic demand is met alongside the required carryover stock,” said a trader in Mumbai, who attended the trade and industry meeting in New Delhi on Tuesday.

A meeting of officials from commerce, agriculture and textile ministries will be held on Wednesday to arrive at the final export target. The new season starts in October and ends by September next year. CAB has estimated an opening stock of 40.5 lakh bales, production of 325 lakh bales, import of 5 lakh bales, export of 49.5 lakh bales and a closing stock of 55 lakh bales for the 2010-11 season.

Southern India Mills Association (Sima) chairman J Thulasidharan said around 70 lakh bales are expected to arrive in the first two months of the new season. GTN Textiles managing director BK Patodia said traders have agreed to voluntarily restrict exports for the first three months of the new season.

Source : economictimes.indiatimes.com