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India likely to export 8mn cotton bales this season
Nov '11
India is likely to export 8 million bales (1 bale = 170 kg) of cotton during the current season which began on October 1, 2011, the country's Parliament has been informed.

In a written reply to the Lower House of Parliament, the Minister of State for Textiles, Ms. Panabaka Lakshmi, said the Cotton Adivsory Board (CAB) has estimated the country's cotton exports during 2011-12 cotton season to be 8 million bales, after reviewing the cotton availability in the country on November 15.

Last year, India's cotton exports stood at 7 million bales. Initially, the Government had put a cap on the export of cotton at 5.5 million bales in view of the rising prices of the natural fibre. Subsequently, the Government allowed export of another 1 million bales and thereafter it completely removed restrictions on the export of the raw material in September this year and permitted cotton exports under the Open General Licence (OGL).

CAB has estimated India's cotton production this season at 35.6 million bales compared to 32.5 million bales produced last season.

The Minister said the CAB has assessed domestic textile mill consumption of cotton to reduce this year to 21 million bales from last year's 24 million bales, showing a slump in the domestic textile industry.

Citing the estimates made by Cotton Yarn Advisory Board (CYAB), the Minister said the production of cotton yarn in the country is projected to be 3.2 billion kg this fiscal compared to 3.9 billion kg during fiscal 2010-11.

Restrictions on export of cotton yarn for fiscal 2011-12 were lifted on March 31 this year. Last fiscal, cotton yarn exports were capped at 720 million.

Fibre2fashion News Desk - India

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