India restarts cotton exports

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NEW DELHI (Commodity Online): India has restarted the cotton exports from Tuesday. The government has regulated the exports by a ceiling up to 2.5 million bales as the domestic prices in are still on a high.
The government had earlier allowed 5.5 million bales for exports during the cotton season 2010-11 (October-September), but exporters failed to ship the entire quantity after unseasonal rains delayed arrivals in the spot market. The entire shipment quota was to be completed by December 15.
Now the government has provided the exporters to ship the remaining quantity of 2.5 million bales of cotton. Second phase of registration for the exports ended on January 6 and the government will decide on the specific allocation of quantity for traders by Monday.
After bad weather hit the crops in China and Pakistan, there is an increased demand for India cotton abroad, India is also the second biggest exporter of the fibre.
At the same time India’s $62 billion textile industry was heavily concerned over the India government’s plan to extent the exports of cotton. Domestic traders are worried that delays in exports and the issuance of export licenses could significantly increase domestic inventories, causing cotton prices to plummet at home, the textile industry, expecting seasonal delays, had asked for a ban on current exports to ease unusually high prices.
On the International front, the prices saw a sharp fall in anticipation of more flow from India into the global market. Global markets were suffering from the delayed and dwindled cotton exports from India. India is one of the top exporters of cotton.

(Source: http://www.commodityonline.com/news/India-restarts-cotton-exports-35510-3-1.html)

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