The Union Government has deferred commencement of registration of cotton export contracts to October 1.
According to an official in the Ministry, the Union Ministry of Commerce and Industry issued a notification dated August 17 bringing cotton exports under the “free list” from October 1 and the Office of the Textile Commissioner was to start registration of cotton export contracts from September 15. A release from the Union Ministry of Textiles on Wednesday said the process of registration of contracts for export of raw cotton, cotton waste and cotton (carded or combed) was deferred to October 1.
Industry sources said that during the last one month, cotton prices shot up by nearly Rs. 10,000 a candy and the textile industry had sought calibration of cotton exports. They also said that cotton exports should not be permitted for the first three months of the new cotton season (October 2010-September 2011).
According to K. N. Viswanathan, Secretary of the South India Cotton Association, the major cotton growing belts, including Madhya Pradesh, Rajasthan, Punjab and coastal areas of Gujarat, were experiencing heavy rains during the last one week and the rains were expected to intensify in the coming days. “This can have an impact on the cotton crop size and it is a matter of concern,” he said. Therefore, the government should reconsider its decision on permitting cotton exports from October.
