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India maintains status quo on cotton exports
Jan '11
The Committee of Secretaries involving ministries that deal with raw and cotton yarn exports met in New Delhi on January 14th as planned. No decision was made with regard to revising the export quota limit for raw cotton and cotton yarns.

The maximum export limit will be 5.5 million bales of 170 kg each. On January 10th, India's Director General of Foreign Trade allocated 1.9 million bales to 928 exporters, which have to be shipped by February 25th. This allotment of remaining bales will fulfill the export quota limit of 5.5 million bales.

A senior executive of a textile conglomerate who wanted to remain anonymous advised this scribe via a telephone conversion on Saturday morning U.S time (January 15) that the committee of secretaries that met Friday, January 14th did not make any decision on revising the quota limit of raw cotton and cotton yarn.

Mr. Subhash Grover, Chairman and Managing Director of Cotton Corporation of India confirmed this information via a telephone conversation from Mumbai, India and advised that India will maintain its status quo with regard to raw cotton export.

In summary, as of January 15th, India's export quota limit for raw cotton stands at 5.5 million bales (170 kg each, with February 25th being the deadline for physical shipment of 1.9 million bales.

Seshadri Ramkumar

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