India eases cotton exports ban
India’s commerce ministry has it would allow cotton cleared by customs before 4 March, 2012, to be exported from the country, easing the ban the country’s government recently imposed.
India banned exports on 5 March to ensure adequate supplies for the domestic textile industry. Agriculture minister Sharad Pawar demanded the ban be lifted, saying it hurt cotton farmers, while China’s cotton industry association said the ban was “irresponsible” and would disrupt the global market.
Easing the ban to exclude shipments already cleared by customs is unlikely to ease prices, traders said, as the amount is quite small.
“Farmers, traders and exporters are holding a large amount of stock. So there is a need to allow more exports. What the government has done will trim the inventory by a very small amount. It is not a significant price booster,” said Pradeep Jain, a trader based in Jalgaon, in western Maharashtra.
