Global trade body hails lifting on cotton export ban by India.

NEW DELHI: The International Cotton Association (ICA) has hailed India's decision to lift cotton export ban and hoped that the registered contracts would be scrutinised soon to enable shipments for meeting global commitments.

In a statement, ICA said it is "encouraged by the Indian government's move to lift its cotton export ban and is now waiting to see how the situation unfolds, as there is still some uncertainty over previously issued registration certificates".

On March 5, the government had imposed a ban on cotton exports to boost domestic availability. However, the ban was lifted on March 12 following political pressure but with a rider that the registration certificates against which exports have not taken place would be scrutinised and revalidated.

Before the ban, the registrations certificates for 130 lakh bales (170 kg each) were issue and out of that 95 lakh bales of cotton were shipped.

ICA, the world's largest arbitrary body on cotton, expects that accepted registrations would be revalidated to enable international contracts to be executed without further delays, defaults and reputational damage.

In an attempt to promote a safe trading environment, the global body has sought talks with Indian government officials to discuss the issues that led to the ban and to try to seek mutually acceptable solutions.

Source : economictimes.indiatimes.com