Expressing shock over government's decision to halt registrations of cotton exports as well as to suspend the shipments against past registration, the apex cotton body-Cotton Association of India (CAI)-has urged the government to withdraw the suspension of cotton exports registration and permit shipments against contracts those are already registered.
The quantity of registered but unshipped is around 25 lakh bales, contracts for which were inked several weeks back. "It is quite likely that many of these contracts will turn into international disputes. Not only will the exporters be subjected to huge losses but they will have to also face claims and arbitrations with their buyers," said Dhiren Sheth, president, Cotton Association of India.
According to CAI, the move to restrict registration of cotton exports will also adversely affect the interests of the nation in general and that of the Indian farmer in particular.
It may be mentioned here that the government's decision to halt cotton export from India has note gone well with the ginners in Gujarat.