Agri Business

Cotton exports ceiling retained

PTI New Delhi | Updated on February 10, 2011

A scene at the Rajkot APMC yard where raw cotton has piled up (file photo)   -  Business Line

The Committee of Secretaries (CoS) on Thursday met to review the cotton exports trends and retained the cap of 55 lakh bales of natural fibre shipments for the current cotton season as of now. CoS, including commerce and textiles secretaries met here.

“As of now, we are maintaining the export figure (of 55 lakh bales for cotton exports),” Textiles Secretary Ms Rita Menon said.

The cotton season runs from October to September. Of the 55 lakh bales (170 kg each) ceiling fixed by the government, 38 lakh bales had already been exported till December 15. The government had allowed cotton shipments from November 1 and contracts had to be shipped within 45 days.

Later on, the Directorate General of Foreign Trade, under the Commerce Ministry, has allowed shipments of the remaining quantity of natural fibre and the traders can ship their cotton contracts till February 25.

According to the Cotton Advisory Board projections, the natural fibre production has been estimated at 329 lakh bales in the current cotton season against domestic demand, which is pegged at 266 lakh bales.

According to sources, between October to January 31, the cotton arrivals are about 165 lakh bales against earlier estimates of 195 lakh bales. Asked whether the cotton output data can be revised, she said, “Yes, it is possible.”

Earlier, the government had also decided to have a carry-forward stock of about 50 lakh bales of raw cotton at the end of the current cotton season.

Currently, cotton prices are ruling at around over Rs 50,000 a candy (356 kg) compared to about Rs 23,000 a candy in the domestic market.

Published on February 10, 2011

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