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Bangladesh may get Indian cotton
Mar '12
The Government of India is considering selling cotton to Bangladesh by way of a contractual agreement between the Cotton Corporation of India (CCI) and its counterpart in the neighbouring country.

During its meeting with India's Commerce Secretary Rahul Khullar, a visiting Bangladeshi delegation led by Commerce Secretary Md Ghulam Hussain raised concern over restrictions imposed by India on cotton exports.

The Bangladesh side said it needs a minimum of 1.5 million cotton bales from India every year.

At the meeting between the Commerce Secretaries of both countries, which took place after a gap of nearly eight years, both sides agreed to renew their existing bilateral trade agreement, which expires on March 31, 2012, for a further period of three years.

The trade agreement lists the steps that are to be implemented by both sides to improve bilateral trade, in addition to concessions provided by both sides while trading in each other's goods.

India's Commerce Secretary Rahul Khullar said a Group of Ministers (GoM) are going to meet next week to decide whether to allow further exports of cotton during the remaining months of the current marketing year that ends in September.

The Indian Government imposed a sudden ban on cotton exports on March 5 this year, but subsequently it partially rolled back the ban on March 12, following political pressure. However, fresh registration for export contracts was stopped.

Prior to the cotton export ban, registration certificates (RCs) were issued for export of about 13 million bales of 170 kg each, of which 9.5 million bales were already shipped out.

The RCs issued for about 3.5 million bales prior to the ban, whose actual exports had not taken place, are being scrutinized by the Directorate General of Foreign Trade (DGFT).

The scrutiny procedure of RCs for cotton exports to neighbouring nations through land route has been completed.

During the current cotton season, India is estimated to have produced a record 34.08 million bales of cotton.

Fibre2fashion News Desk - India

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