ANNOUNCEMENT 04 Sep 2010In September 2010, the government of India announced an altered export quota.
NUMBER OF INTERVENTIONS
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=65557
Govt caps cotton exports at 55 lakh bales, The Hindu, 4 September, 2010: http://www.thehindu.com/business/Economy/article614046.ece
Notification No. 32(RE-2010)/2009-14 - 11 March 2011
Notification No. 62 (RE-2010)/2009-2014 - 2 August 2011
On 4 September 2010, India announced a cap of 5.5 million bales (of 170 kg each) for cotton exports during the financial year 2010-11. This order will come into force from 1 October, 2010 and is valid until 30 September 2011. 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.
An official notificaton was published regarding this on 14 March 2011.
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.
On 9 June 2011, the cap was increased to 6.5 million bales (see related measure).
On 2 August 2011, the export cap was lifted.