Author： * Time：Dec 23 2010 9:04AM
Indian government will decide whether to raise its export limit for cotton above 5.5 million bales for 2010-11 in mid-January, trade secretary Rahul Khullar said on Wednesday, and registration for current export quotas will reopen next week.
Trade minister Anand Sharma said on Tuesday India would allow exports in 2010-11 of the 2.5 million bales that exporters have failed to ship so far under the 5.5 million bales allowed.
India, the world's second-biggest producer and exporter of cotton, had given permission for exports of 5.5 million bales in the 2010-11 cotton year that began on October 1, but had asked exporters to ship the entire quantity from November 1 to December 15.
Exporters managed to ship only about 3 million bales by the deadline as unseasonal rains in October and November delayed arrivals of bales at domestic markets.
"A committee comprising the textile, agriculture and commerce secretaries will review the demand-supply situation and take a call on raising the limit on January 15," Khullar said.
Cotton exporters are demanding permission to ship up to 8 million bales in 2010-11 as the country is set to harvest more than 32.5 million bales in 2010-11, topping last year's 29.5 million bales, industry and government officials have said.
"I think from the first or second week of January the government will allow shipments of 2.5 million bales," said Chirag Patel, chief executive officer at Jaydeep Cotton Fibers Pvt. Ltd, one of the country's leading exporters.
Overseas demand for cotton has increased after bad weather hit crops in China and Pakistan, both leading consumers. "The country has also put a cap on cotton yarn exports at 720 million kg and exporters have so far managed to export 530 million kg," Khullar said.
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