Despite producing a record output, India’s cotton exports for the current season are likely to end up below the earlier estimates of 14 million bales of 170 kg each, the US Department of Agriculture (USDA) has said.
India produced a record 35.2 million bales of cotton during the 2011-12 crop year.
In May 2012, USDA estimated that India’s cotton exports for the 2011-12 marketing year to be around 14 million bales, but now when the marketing year is about to end, exports are not seen rising beyond 12.87 million bales, a USDA report said.
In spite of lifting of the ban on cotton exports since April 30, 2012, poor global demand, stringent export registration policy and firm prices have jointly held back cotton exports from the country, it added.
On May 4 and May 8, 2012, India introduced a new policy for registration of cotton export contracts. As per the new norm, the export quantity under each registration certificate has been capped at 10,000 bales for established exporters and at 1,500 bales for those who are exporting for the first time.
The USDA report states that the new procedure is the most restrictive policy implemented by the Government of India for cotton exports since 2010.
Indian cotton exports during the months of August and September are likely to remain low, owing to weak global demand for cotton and the stringent export registration norms, the report said.
Fibre2fashion News Desk - India