India - Government lifs suspension on fresh exports of cotton
Dated- 01 May , 2012 - India
The government has lifted the suspension on fresh exports of cotton, following a re-assessment of the situation by the Cotton Advisory Board based on fresh estimates of output and consumption.
While no quantitative restrictions have been imposed on cotton exports, the situation will be reviewed by the informal group of ministers, or GoM, in three weeks and a fresh assessment made, Commerce and Textiles Minister Anand Sharma told reporters after the meeting of the GoM on Monday.
The informal GoM is headed by finance minister Pranab Mukherjee and includes agriculture minister Sharad Pawar and commerce and textiles minister Anand Sharma.
"We have lifted the suspension on fresh registrations for exports and accordingly, the DGFT will take necessary steps," Sharma told exporters.
The commerce ministry had banned cotton exports on March 5, as it feared a shortfall in domestic cotton supplies following massive registrations for exports in the previous two months.
It was forced to partially lift the ban on March 12 by allowing exports of pending contracts after strong objections from agriculture minister Sharad Pawar and cotton-growing states of Gujarat and Maharashtra.
India exported 9.4 million bales (170 kgs each) of cotton in the first five months of the cotton year that will end September 30, bringing down availability for domestic consumption for the entire season to 23.3 million bales against 26.8 million bales consumed last year.
About 2 million bales of cotton registered for export prior to the ban was allowed to be shipped subsequently, but the government has so far had not allowed fresh registration for exports.
Sharma said a number of political leaders had met him as well as the finance minister and Prime Minister to raise concerns about the suspension of registration.