Indian’s cotton exports are now estimated at 12.87 million bales which is lower than May 2012 estimates by the US Department of Agriculture (USDA). For the 2011-12 marketing year (August-July), USDA had pegged India's total cotton exports at around 14 million bales which may now dip by 8.8% to 12.87 million bales in the 2011-12 marketing year ending this month.
This decline in exports can be attributed due to weak global demand, firm prices and a more stringent export registration policy which combined have capped the exports since the export ban was lifted on April 30.
Meanwhile, India has outlined new procedures for registration of new cotton export contracts shortly after lifting its ban on cotton exports on May 4 and May 8, 2012. This new policy limits the amount of each registration certificate (RC) to 10,000 bales of cotton for established exporters and to 1,500 bales for exporters who have not exported previously. Besides, this is the most restrictive policy the government has implemented since 2010.
Further, on anticipation of weak foreign demand and the ongoing export registration norms, export prospects for the months of August and September appear bleak. In the 2011-12 crop year (July-June), the country’s cotton production stood at a record 35.2 million bales.