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    India Has Decided To Allow Cotton Exports From November 1St.

    2010/9/29 17:34:00 60

    India Cotton Export

      

    September 28th,

    Ministry of textiles

    Secretary Rita Menon said that a ministerial group in India decided on Tuesday to allow exports of cotton from November 1st, easing the delays in the export of the second largest cotton suppliers in the world.


    She said the registration of cotton exports will begin in the new market year beginning in October 1st.


    The decision will help curb global prices, after Tuesday's NYBOT cotton futures hit a 15 month high, as traders bet on India's delay in cotton exports, making the world's cotton factories rush to find other sources of supply.


    Cotton futures in NYBOT10 rose 4.63 cents on Monday or 4.6% to $1.0593 a pound, the highest level since --1995. According to the industry journal cotton outlook, a ministerial organization postponed when India would be held.

    Export cotton

    Make a decision.


    India's textile Ministry has been pressing for a delay in cotton exports to January to ensure there is no domestic shortage.


    The new cotton harvest in India began at the beginning of this month. Most of the cotton grades required by the textile mills were completed before January.


    At the beginning of this month, India allowed duty-free exports to 5 million 500 thousand packs.

    cotton

    - 170 kilograms per bag, and the export of this quantity will be taxed.


    Agriculture minister Sharad Pawar told reporters that the harvest will enable the country to export 750-800 million packages in 2010/11.


    The ministerial level organization is scheduled to meet again in October 15th to assess the need to impose tariffs on more than 5 million 500 thousand packages of exports, textile Secretary Menon said.

    The government has not yet announced export tariffs that will exceed the limit.


    If the registration process is postponed to the scheduled date of October 1st, the delivery schedule of local cotton exporters will be interrupted. They have signed a contract for exporting about 1 million 400 thousand bags before the new harvest.


    The US Department of agriculture (USDA) estimates that global cotton production will exceed production this year. Cotton mills have been snapping up cotton for months, pushing prices up steadily since July.


    As other countries around the world rush to buy supplies, India cotton producers earn more money by selling to other countries than they sell to domestic cotton plants.


    India expects to produce 32 million 500 thousand bales of cotton (170 kg / pack) in 2010/11, an increase of 10% compared to the 29 million 500 thousand package in 2009/10, due to the increase of planting area.

    The country exported about 8 million 300 thousand bales in 2009/10.

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