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Government allows fresh exports of cotton

30 Apr 2012 Evaluate

The government has reversed the ban on cotton and has allowed its exports. Fresh registrations are expected to start in the next 1-2 days. After a meeting between the GoM and the Prime Minister Commerce Minister Anand Sharma informed about the decision. The GoM is expected to review the situation based on revised estimates and figures of crop size.

The exports of cotton has become a political issue after the government banned its exports on March 5 citing shortages in the domestic markets and a tendency of cotton mills to hoard the fibre abroad.  The decision drew flak from the United Progressive Alliance, as well as Gujarat chief minister Narendra Modi. The international community also did not view it favourable.

Consequently the government then allowed exports of those quantities which had already been registered with the Directorate General of Foreign Trade, subject to revalidation by authorities. However no new registrations were allowed. Now with today’s decision the ban stays reversed and fresh registrations are expected to start in the near future. 

 

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