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India may not allow additional cotton exports in this marketing year: USDA.


Date: 07-04-2012
Subject: India may not allow additional cotton exports in this marketing year: USDA
New Delhi: India may not permit additional export of cotton till the end of the 2011-12 marketing year that ends in September, the US Department of Agriculture (USDA) said in a report.

Last month, the government lifted a ban on cotton exports but said no fresh registration certificates for its exports would be issued until further notice. India's cotton season runs from October to September.

"No new additional export registrations are being approved and this report assumes that existing policy parameters will be in place through September 30, 2012, the end of the Indian cotton marketing year," the US Department of Agriculture (USDA) said in its latest report.

India's national fibre policy affirms that cotton exports should be limited to the exportable surplus, it said.

USDA also said, "While the shifting export policies have helped to disrupt international and domestic markets and lower farmer prices for cotton, the Government of India is expected to continue to try and ration the volume of exports."

The government is currently reviewing an additional three million bales of cotton that were registered for export at the time the ban was announced.

"It is not clear how much of this cotton will eventually be exported. However, a long review process will likely lead to lower additional exports as foreign buyers cancel contracts," the USDA said. One bale has 170 kg of cotton.

Nevertheless, India's total cotton exports would touch a record 11.75 million bales in the 2011-12 marketing year (October-September), it said.

As per government data, 9.5 million bales has already been shipped between October and March 4 of the current marketing year, it added.

India has emerged as one of the world's leading cotton exporters following the dramatic increase in cotton production after the introduction of Bt seeds.

In 2011-12, the country is estimated to have harvested a record 34.25 million bales of cotton.

Source : zeenews.india.com

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