The government today started fresh registrations for export of 2.5 million cotton bales within the overall limit of 5.5 million bales.
The Directorate General of Foreign Trade in the commerce ministry had started accepting applications for new registrations. This would continue till January 6, an official said. Of the 5.5 million bales (of 170 kg each) permitted for the current season, exports have already been transacted for three million cotton bales.
A group of ministers had allowed 5.5 million bales for exports during the cotton season 2010-11 (October-September), but exporters failed to ship the entire quantity after unseasonal rains delayed arrivals in the spot market.
The entire shipment quota was to be completed by December 15, 2010. The government later decided to give exporters more time to ship the balance cotton.
Registration certificates would be issued for up to 100,000 bales of cotton on a single application.
Disruption in production of the natural fibre in major cotton producers like the US, China and Pakistan due to adverse conditions has pushed the demand for Indian cotton in the international market.
India is likely to produce more than 32.5 million bales (170 kg each) of cotton in 2010-11, higher than last year’s 29.5 million bales.
