Move to allow shipments based on Ministers' panel decision.
Our Bureau
New Delhi, Dec. 17
The Directorate General of Foreign Trade (DGFT) will now issue Export Authorisation Registration Certificate (EARC) to cotton exporters in place of the Office of Textile Commissioner, Mumbai with immediate effect. The EARCs will be issued for the remaining portion of the 55 lakh bales that were allowed for shipments this season (October 2010-September 2011).
A notification issued by the DGFT late on Thursday said that with immediate effect, the DGFT would issue the EARCs for exports of cotton, not carded or combed, Bengal deshi, Indian cotton of staple lengths from 20.5 mm to 34.5 mm and above, cotton other than Indian, of all staple lengths, cotton waste (including yarn waste and garneted stock) and cotton, carded or combed.
Stating that the export contracts of cotton would now be registered by the DGFT when such registrations were hitherto vested with the Textile Commissioner, Mumbai, a policy circular from the DGFT said that it was the decision of meeting of Group of Minister that 55 lakh bales of cotton should be allowed for export during the cotton season 2010-11 (October to September).
Actual exports began from November 1 under the EARCs granted by Office of Textile Commissioner, Mumbai, giving 45 days' time to make such exports. It has now been brought to the notice of the Government, the circular said, that actual exports under such registered contracts are much less than the quantity approved by the Government.
Hence, the notification issued by the Commerce Ministry through the DFGT on Thursday stipulates that henceforth registration of contracts for export of cotton would be done by the DGFT. The precise modalities of such registrations and conditions that need to be fulfilled or adhered to would be notified separately, once the balance quantity that remains to be shipped is ascertained, it was clarified.
Even as the Government sticks to its stance of shipping 55 lakh bales of cotton export this season, the Confederation of Indian Textile Industry (CITI) and the knitwear apex body, the Tirupur Exporters Association (TEA) had drawn attention to the shortage of raw cotton for domestic consumption in general and to textile segments in particular.
They also disputed the Cotton Advisory Board (CAB) estimates of production of 325 lakh bales this year due to loss of crop in Gujarat and Maharashtra owing to excessive rains and in Andhra Pradesh due to floods
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