Government allows export of 55 lakh bales of cotton
04 Sep 2010
The government has allowed export of cotton beginning 1 October 2010 and has set a limit of 55 lakh bales for the financial year 2010-11. Additional shipments would attract duty.
"The approximate quantity of exportable surplus of cotton was arrived at after detailed discussions with the officials from the department of textiles, agriculture and DGFT here last evening," Rahul Khullar, secretary, department of commerce, said after announcing the decision in New Delhi today.
He said cotton production in the country during 2010-11 is likely to be 325 lakh bales (of 170 kg each) on a conservative estimate. However, the ministry of agriculture expects the yield to touch 335 lakh bales, he added.
A clearer picture on the production, industry demand and prices would emerge by mid-November, Khullar said.
Exporters can register online with the textile commissioner's office by 15 September 2010, Khuller said.
Further, he said the concerned departments would conduct a review meeting on 15 November 2010 to take further steps, if necessary, on the issue of cotton export. The decisions have been taken to protect the interests of the farmers and meet the requirements of the exporting community, he said.
Cotton exports currently attract a duty of Rs2,500 per tonne. The commerce and revenue departments plan to revise the amount of prohibitive duty, he said.
(See: Pakistan would need imports of additional 3.5 million bales cotton)
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