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Govt allows export of another 19 lakh bales of cotton

13 Apr 2012 Evaluate

The government has allowed export of another 19 lakh bales of cotton, which is likely to give a fresh impetus to cotton prices and would benefit both farmers and exporters. As per the Commerce Ministry statement, on April 11, registration certificates (RCs) in respect of about 10 lakh bales were revalidated for exports, including the revalidation made on 23rd and 28th March 2012.

Further, DGFT has completed the scrutiny of the remaining applications. The government has decided that all these RCs be revalidated. Thus, RCs for approximately another 9 lakh bales of cotton will be revalidated no later than April 17, 2012.

Moreover, as per the statement, all RCs were to be scrutinized before revalidation so that they could go ahead with their exports. The government directed that priority be given to such cotton that had been pending for export through Land Custom Station on Indo-Bangladesh, Indo-Myanmar, Indo-Pak, Indo-Nepal and Indo-Bhutan borders. The next priority was to be given to cotton that had been handed over to Customs.

The government had banned the export of raw cotton on March 5, 2012. However, the ban was revoked on March 12, 2012 under tremendous political pressure on the condition that the pending RCs would undergo scrutiny and re-validation by the director general of foreign trade before being exported.

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