Govt to decide on further time extension for cotton exports .

December 15 may bring respite to raw cotton exporters, who had been permitted to export 5.5 million bales of cotton. However, the information that Indian exporters have so far been able to export less than half of 5.5 million cotton bales, has come as a breather to the domestic textile sector.

As per the government’s decision, cotton exports from India had been permitted from 1st November and the entire volume of 5.5 million cotton bales had to be exported by 15th December. But, till now, around 2.5 million cotton bales have been shipped out of the country. The Government of India has to take the decision, at the ministerial level, whether it should give further time extension for cotton exports. This was revealed by Rita Menon, the Secretary in the textile ministry.

Ministers from various ministries such as finance, commerce, agriculture and textile are anticipated to meet, in order to decide on further time extension for exports of cotton.

Menon further added that the government will scrutinize all the registrations in order to ensure their authenticity. Initially, the government will take note of valid registrations only and see the variation between the quantity of exports and the quantity registered for the purpose of exports. Then only it will arrive at a suitable policy decision.

In September, when the government came up with the decision of permitting cotton exports in this season, the entire textile sector had opposed the decision. The opposition was because of the impediment that was likely to be caused to the domestic textile sector due to high raw material prices.

Source : fibre2fashion.com