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India rebegins export of cotton to Bangladesh
Nov '10
After a gap of six months, Indian exporters have resumed exporting cotton to Bangladesh through Benapole Port on November 1, following a court order which permitted them to go for duty-free export of cotton to Bangladesh.

All cotton imports through the Benapole Port were suspended since the Indian government, intending to ensure adequate supply of the commodity to domestic textile units, imposed a ban on its exports in April.

As India suspended its cotton exports, the cotton prices escalated to an all-time high of $1.19 per pound in the global market last month. All these factors greatly disturbed Bangladesh and China, as both the countries rely on imports to fulfil the cotton requirements of textile units in the country.

Experts say that, the rise in the price of cotton is mainly due to the massive floods, which devastated a large quantity of cotton crop in Pakistan, which is the world's fourth biggest cotton manufacturer, and also the ban imposed by the Indian government on exports of cotton.

Fibre2fashion News Desk-India

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