The government today allowed export of cotton with effect from October 1 without the required licences even as it needs to be registered with the authorities concerned, said a notification issued by the Directorate General of Foreign Trade (DGFT), which is under the Ministry of Commerce and Industry.
The government has also removed the export duty of '2,500 a tonne on raw cotton which it had imposed on April 9. On the back of steep rise in the prices of cotton and ballooning exports, the registration of cotton export was stopped from April 19 and only those under licence were allowed.
“Export duty on cotton has been removed and export will be allowed under the Open General Licence from October 1 onwards,” said Commerce Secretary Rahul Khullar. The textiles commissioner’s office would now start registering export contracts from September 1.
He also said that officials from the ministries of commerce, textiles and agriculture would meet next month to review the status of cotton production and demand for the item, both in domestic and overseas markets. The officials would also determine the quantum of exports.