India: Cap announced for Cotton Exports
Description
On 4 September 2010, India announced a cap of 55 lakh bales (of 170 kg each) for cotton exports during the financial year 2010-11. This order will come into force from 1 October, 2010. The exporters can register their cotton exports online on a 'first come, first serve' basis. The Textile commissioner will not register any contract after 55 lakhs have been exported. Currently cotton cannot be exported without mandatory registration. The registration is scheduled to start from 15 September.
According to the Ministry of Commerce, Government of India, the current world prices of cotton at Rs. 1 lakh per tonne are speculative in nature and this cap on exports have been announced in order to protect the domestic textile industries. This cap would be reviewed by the government in mid-November by when a more clear picture of production, industry demand and prices would emerge.
Any Evidence-Based Deliberation:
| Question | Result |
|---|---|
| Is there anything in the public record to suggest that evidence of the effectiveness of the proposed measure was considered during official deliberations? | |
| Is there any evidence that alternatives to the proposed measure were considered? | |
| Is there anything in the public record that suggests that empirical evidence informed the comparison across the alternatives available to government? | |
| Was such evidence identified? | |
| Is such evidence publicly available? | |
| Did the official decision-maker in question provide an explanation as to why a chosen measure was favoured over alternatives? | |
| Is there any evidence to suggest that potentially affected trading partners were consulted before the measures were taken? | |
| Is there any evidence that safeguards have been put in place to ensure that implementation of the initiative is transparent and non-discriminatory? | |
| Did the government state its intention to review the measure within one year of implementation? |
Date Discovered: 05/09/2010
Implemented: Yes
Date of inception: 1 Oct 2010
Duration: 6 months
GTA Evaluation: Red
Source:
Press Release: Government allows cotton exports up to 55 lakh bales in 2010-11 to review the cotton export scenario on 15th November, Ministry of Commerce and Industry, Government of India 2010, 4 September, 2010 http://pib.nic.in/newsite/erelease.aspx?relid=0
Govt caps cotton exports at 55 lakh bales, Hindu Businessline, 4 September, 2010 http://www.thehindubusinessline.com/blnus/03031891.htm
Government Response:
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