INDIA: Government raises raw cotton exports by 1m bales
The Indian government is to allow the country to export an additional 1m bales of raw cotton during the current season which ends on 30 September, in a move that raises the export cap from 5.5m bales to 6.5m bales.
The move comes amid falling prices and reports that more cotton will be planted in the in the coming, but the government says it will continue to review the situation.
The contracts for export the cotton still need to be registered with the Directorate General of Foreign Trade prior to shipment, the department said in a statement.
India, the world's second-biggest producer and exporter of cotton, introduced a ban on raw cotton exports back in April last year, in an attempt to halt soaring price hikes and exports.
Shipments resumed on 1 November, but the cap of 5.5m bales was imposed - leading to a rush of applications for the quota.
Spinners claim the latest move will lead to a shortage of cotton for the domestic industry, which could again push up prices.
Only last week they cut production by around one-third in a bid to reduce stocks of cotton yarn at mills, which have been suffering losses thanks to rising raw materials costs and unsold stocks.
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