DGFT crafts new cotton export license policy for transparency


Kolkata, Jan 23 (PTI) The Director General of Foreign Trade (DGFT) has not included ”prior experience” as a pre-condition for people seeking cotton export permit to keep the licensing policy simple and transparent.
"When we invited applications we asked who wanted to export. Putting the condition of prior experience would have meant discrimination against players," director general Anup Pujari told PTI.
"More importantly, if we say prior experience then somebody needs to check that claim, which in turn would increase the transaction cost and cause delay," he said.
"We had very little time to export so the step was taken to keep things clear, simple and transparent," he said.
DGFT had issued license for cotton export for 1.9 million bales and licensing for 3.6 million bales was done by the Textile Commissioner for export of 5.5 million bales, decided by the Group of Ministers.
Some 928 licenses were issued by DGFT and allocation was done on a pro-rata basis.
There were allegations from a few exporters that almost 60-70 per cent of the licensees were not traditional cotton exporters.
"You can also say it has given opportunity to new players," Pujari said.
The cotton export, which has to be completed by February 25, beginning from January 25 from when the licence would turn valid.

(Source: http://news.in.msn.com/business/article.aspx?cp-documentid=4831617)