‘No new permit for cotton export’

A Group of Ministers reviewed the domestic supply-demand situation and decided that no fresh registrations would be permitted during the current marketing year

Written by ENS Economic Bureau | New Delhi | Published: April 10, 2012 1:56 am

A Group of Ministers today reviewed the domestic supply-demand situation and decided that no fresh registrations would be permitted during the current marketing year.

“Until further order,there won’t be fresh registration,” Commerce,Industry and Textiles Minister

Anand Sharma told reporters after meeting of the Group of Ministers headed by finance minister Pranab Mukherjee. He added that about 2-2.5 million bales would be allowed to be exported by already registered exporters. However,these would also be permitted only after revalidation and scrutiny.

The marketing year for cotton runs from October to September and one bale contains 170 kg of cotton.

The decision comes amid pressure from Gujarat chief minister Narendra Modi criticising the centre’s decision to ban cotton export on concerns that the domestic supply mat be hampered. The ban was partially lifted after the strong criticism by Modi.

The Centre has directed CCI to buy 15,000 bales of cotton from Gujarat on a daily basis. Sharma has asked the Cotton Corporation of India (CCI) to buy cotton from the state at Rs 4,400 per quintal.

The CCI has also been asked to maintain a reserve of one million bales per month.

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