The government would allow export of 2.5 million bales of unshipped cotton out of the 5.5 million bales permitted till December 15, Commerce and Industry Minister Anand Sharma said today.
“We have reviewed the market arrivals and availability (of cotton). What had been determined as exportable surplus will notbe held back. Almost 2.5 million bales have not been shipped so far, we will allow export of that,” the minister told reporters.
The government had capped export of cotton at 5.5 million bales thisyear to prevent a sharp rise in domestic prices.
Export contracts totalling 5.24 million bales had been registered with the textile commissioner. The export registrations were valid only till December 15. Exporters, however, were not able to ship out the entire 5.24 million bales cotton by December 15, with the result that export registrations lapsed.
Exporters had been asking the government to revalidate the contracts, giving them more time to ship out the balance quantum.
Sharma said the government would allow exporters to ship out the balance, but did not clarify whether the existing registrations would be revalidated or traders would have to apply afresh.
