India to Allow Unrestricted Cotton Exports after October 1
All duties and quotas will be removed on October 1, although officials could reinstitute them if the market changes.
Starting on September 1, the Indian government will once again begin registering cotton export contracts for the next marketing year, which begins October 1. Earlier this year, a US$53.56 per ton duty was levied on shipments, and exports were banned completely from May through September. The restrictions were imposed when the domestic price of cotton skyrocketed and there were fears that local textile manufacturers would not have enough raw material to meet demand.
Although India’s cotton production is still expected to increase from 5 million tons last year to 5.1 million tons in 2010-11, local demand should increase more (from 4.3 to 4.6 million tons). As a result, the International Cotton Advisory Committee expects India’s exports to drop by 14 percent, from 1.4 million tons to 1.2 million tons.
When prices rose nearly 36 percent between October 2009 and May 2010, India’s cotton exports more than doubled, from 3.5 million bales (at 170 kg each) in 2008-09 to more 7.4 million bales in 2009-10. Commerce, textile and agriculture officials are scheduled to meet in September to review cotton price, demand and production estimates for the coming year – both global and domestic – and if there are concerns about the ability to meet the demand of local mills, the government could decide to impose limitations on how much cotton is exported. Until that time, even though exports will fall under the Open General License category, they will still need to be registered with the Textiles Commissioner.
Comments (9)
(Thu Dec 22 01:34:08 2011)
Cotton Situation is quite unclear in Pakistan So far, because still flood relief work is going on and actual assisment regarding the loss to Cotton Belt is still not taken. Most of the bodies believe loss of the cotton due to flood will be covered by the additional sowing and production will touch the last years figures instead of early expection of 14 Million bales of 170 kg. Price petron is very shaky having flacuations of 300-400 rupee per 37.324 kg md. Aijaz Nazam M. Nazam Industries Bahawalpur, Punjab, Pakistan
(Thu Dec 22 01:34:07 2011)
Cotton prices have skyrocketed further since May 2010. The Govt's decision to free export of cotton in terms of quantity without duty will add fuel to the fire and will be detrimental to indian textile industry.
(Thu Dec 22 01:34:06 2011)
I think this year of "raw cotton"- would be a Gollden year for ginners, and for exporters of "raw cotton", especially S-6 from Gujarat.B'cos Heavy rains and flood did wiped out big crops In China and In Pakistan. So definately it will be a scarcity of raw cotton In loacal market in Pakistan and In China In this year.So They China and Pakistan must Import big amounts of "raw cotton S-6"- from Gujarat/India. We have satisfied rain In Gujarat, so in Gujarat we have big harvesting of cotton, and I do expect 10.50 Millions bales will be produced from Gujarat from 1500 cotton ginning manufactories. This is my personal opinions. Thanks. Rakesh Soni,Baroda, Gujarat, cottonlinter@gmail.com
(Thu Dec 22 01:13:51 2011)
Cotton Situation is quite unclear in Pakistan So far, because still flood relief work is going on and actual assisment regarding the loss to Cotton Belt is still not taken. Most of the bodies believe loss of the cotton due to flood will be covered by the additional sowing and production will touch the last years figures instead of early expection of 14 Million bales of 170 kg. Price petron is very shaky having flacuations of 300-400 rupee per 37.324 kg md. Aijaz Nazam M. Nazam Industries Bahawalpur, Punjab, Pakistan
(Thu Dec 22 01:13:49 2011)
Cotton prices have skyrocketed further since May 2010. The Govt's decision to free export of cotton in terms of quantity without duty will add fuel to the fire and will be detrimental to indian textile industry.
(Thu Dec 22 01:13:48 2011)
I think this year of "raw cotton"- would be a Gollden year for ginners, and for exporters of "raw cotton", especially S-6 from Gujarat.B'cos Heavy rains and flood did wiped out big crops In China and In Pakistan. So definately it will be a scarcity of raw cotton In loacal market in Pakistan and In China In this year.So They China and Pakistan must Import big amounts of "raw cotton S-6"- from Gujarat/India. We have satisfied rain In Gujarat, so in Gujarat we have big harvesting of cotton, and I do expect 10.50 Millions bales will be produced from Gujarat from 1500 cotton ginning manufactories. This is my personal opinions. Thanks. Rakesh Soni,Baroda, Gujarat, cottonlinter@gmail.com
(Mon Sep 26 15:04:45 2011)
Cotton Situation is quite unclear in Pakistan So far, because still flood relief work is going on and actual assisment regarding the loss to Cotton Belt is still not taken. Most of the bodies believe loss of the cotton due to flood will be covered by the additional sowing and production will touch the last years figures instead of early expection of 14 Million bales of 170 kg. Price petron is very shaky having flacuations of 300-400 rupee per 37.324 kg md. Aijaz Nazam M. Nazam Industries Bahawalpur, Punjab, Pakistan
(Mon Sep 26 15:04:45 2011)
Cotton prices have skyrocketed further since May 2010. The Govt's decision to free export of cotton in terms of quantity without duty will add fuel to the fire and will be detrimental to indian textile industry.
(Mon Sep 26 15:04:45 2011)
I think this year of "raw cotton"- would be a Gollden year for ginners, and for exporters of "raw cotton", especially S-6 from Gujarat.B'cos Heavy rains and flood did wiped out big crops In China and In Pakistan. So definately it will be a scarcity of raw cotton In loacal market in Pakistan and In China In this year.So They China and Pakistan must Import big amounts of "raw cotton S-6"- from Gujarat/India. We have satisfied rain In Gujarat, so in Gujarat we have big harvesting of cotton, and I do expect 10.50 Millions bales will be produced from Gujarat from 1500 cotton ginning manufactories. This is my personal opinions. Thanks. Rakesh Soni,Baroda, Gujarat, cottonlinter@gmail.com
