| Date: |
09-07-2011 |
| Subject: |
INDIA: Issues Shipment Permits For Extra Cotton Exports |
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Of the additional 1m bales (170,000 tonnes) of raw cotton made available for export during the current season, 93% has already been allocated, the Indian government revealed this week.
The country, which is the world's second-biggest producer and exporter of cotton, earlier this month raised the export cap for the season ending on 30 September from 5.5m bales to 6.5m bales.
The Director General of Foreign Trade now says that 158,460.78 tonnes have been allocated to 227 eligible applicants. But it added that a further 354 applicants have been rejected because they either had no export in either of the past two years or were defaulters.
India introduced a ban on raw cotton exports back in April last year, in an attempt to halt soaring price hikes and exports. Shipments resumed on 1 November, but a cap of 5.5m bales was imposed.
Spinners claim the decision to raise the export cap will lead to a shortage of cotton for the domestic industry, which could again push up prices.
Source : just-style.com
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