Indian government lifts cotton export restrictions
The Indian government has lifted export restrictions on cotton and allowed it to be shipped under open general licences (OGL) for the rest of the cotton season, responding to a fall in prices of the commodity and its adequate availability in the country. “We have decided to lift export restrictions as there is adequate stock of cotton in the country,” commerce secretary Rahul Khullar told local media.
In the remaining two months of the cotton season, which runs from October to September, exporters will have to register with the directorate general of foreign trade (DGFT)) to send shipments, but will be able to export any quantity they want. The government had placed a cap on cotton exports in October 2010 to check spiralling prices and ensure availability of the raw material for the domestic textiles industry.
Representatives of cotton ginners from seven cotton growing states including Gujarat, Maharashtra, Andhra Pradesh, Karnataka, West Bengal, Tamil Nadu and Madhya Pradesh, had written to the agriculture ministry asking for export restrictions to be lifted as domestic demand of cotton was going down and there was a possibility of a large carryover stock by the end of the season.
