|
| Govt allows duty-free export of 5.5 mn cotton bales |
| BS Reporter / New Delhi Sep 04, 2010, 01:07 IST |
|
Starting next month, the government has decided to allow duty-free cotton export of up to 5.5 million bales in 2010-11. The government said that it would be mandatory for exporters to register with designated agencies.
Though the government decision to allow export of cotton was taken earlier, the decision to impose a ceiling was taken at a meeting between senior officials from the departments of agriculture, commerce and textiles. During the 2009-2010 cotton season total exports stood at 8.3 million bales (100,000 bales is equal to 170 kg). Exports beyond the prescribed limit would be subjected to prohibitive duty.
Last month, the government had notified that cotton export would be put under the Open General License (OGL).
It has also withdrawn the export duty of Rs 2,500 per tonne on raw cotton which was imposed on April 9. On the back of a steep rise in the prices of cotton and ballooning exports, registration of cotton export was stalled from April 19 and only those having license were allowed.
The textiles commissioner will now start registering export contracts from September 15.
Domestic consumption of cotton is estimated to be 22 million bales with a closing stock of 5-5.5 million bales at the end of the 2010-11 season. During the last season, the closing stock was 4.05 million bales.
|
|
|
|
|
|
|
|
|
|
 Read Business news in |  |
|
|
|
|
|
|
Advertisements |
|
|
|
|
|
|
|
|
|
|
Content Guide
