Saurabh Gupta | 22 Dec, 2010
The Government Wednesday welcomed all cotton exporters (new and old) for registration of the remaining portion of the 5.5 million bales (of 170 kg) that is allowed for shipments this cotton season (October 2010-September 2011).
"We welcome all cotton exporters (old and new) for registration of 2.5 million bales of unshipped cotton out of the 5.5 million bales permitted this year," Union Minister for Textiles Dayanidhi Maran told media on the sidelines an award function in New Delhi.
The minister stated this on a question that whether the government will allow only registered exporter for the remaining shipment of cotton this season or will consider new application.
Maran said, "The decision to permit export of 5.5 million bales only in the current cotton season stands."
The entire shipment quota was to be completed by December 15. However, so far cotton exports have reached less than half the permissible limit on supply constraints. A Group of Ministers (GoM) 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.
In a notification issued last week, the Directorate General of Foreign Trade (DGFT) said that it would issue the Export Authorisation Registration Certificate (EARC) to cotton exporters in place of the Office of Textile Commissioner, Mumbai with immediate effect.
While the government is sticking to its stance to allow shipping of 5.5 million bales of cotton export this season, some textile industry bodies including the Confederation of Indian Textiles Industry (CITI) and the Tirupur Exporters Association (TEA) have urged it to curb cotton exports pointing to the fact that India's actual production of cotton this year may be less than even 300 lakh bales against Cotton Advisory Board's earlier estimates of 325 lakh bales.
More recently, global rating agency Fitch had also stated that continued rise in cotton prices, driven by supply squeeze of the raw material, are likely to hurt margins of Indian textile manufacturers through the current cotton season.
"We welcome all cotton exporters (old and new) for registration of 2.5 million bales of unshipped cotton out of the 5.5 million bales permitted this year," Union Minister for Textiles Dayanidhi Maran told media on the sidelines an award function in New Delhi.
The minister stated this on a question that whether the government will allow only registered exporter for the remaining shipment of cotton this season or will consider new application.
Maran said, "The decision to permit export of 5.5 million bales only in the current cotton season stands."
The entire shipment quota was to be completed by December 15. However, so far cotton exports have reached less than half the permissible limit on supply constraints. A Group of Ministers (GoM) 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.
In a notification issued last week, the Directorate General of Foreign Trade (DGFT) said that it would issue the Export Authorisation Registration Certificate (EARC) to cotton exporters in place of the Office of Textile Commissioner, Mumbai with immediate effect.
While the government is sticking to its stance to allow shipping of 5.5 million bales of cotton export this season, some textile industry bodies including the Confederation of Indian Textiles Industry (CITI) and the Tirupur Exporters Association (TEA) have urged it to curb cotton exports pointing to the fact that India's actual production of cotton this year may be less than even 300 lakh bales against Cotton Advisory Board's earlier estimates of 325 lakh bales.
More recently, global rating agency Fitch had also stated that continued rise in cotton prices, driven by supply squeeze of the raw material, are likely to hurt margins of Indian textile manufacturers through the current cotton season.
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