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India may allow mills to export 306,000 bales of cotton to Pakistan and Bangladesh this month under stringent procedures, said an official with the Ministry.
India had suspended fresh registration for cotton exports in April in order to check spiraling domestic cotton prices. Textiles mill complained that raw cotton was not available in the domestic market due to the large scale exports.
Traders, who had signed deals with Pakistan and Bangladesh, are likely to be allowed to export 190,000 cotton bales, of 170 kg each, to Pakistan and 116,000 bales to Bangladesh, said the official, who declined to be named.
Traders would have to pay an export tax of Rs 2, 500 per ton of cotton that was stipulated in April, just before the ban. If allowed, the exports will be the first since the government lifted a ban on May 21 and allowed shipments subject to approval by a wing of the trade ministry.
Most of the country's cotton exports were to China, which competes with India in the textiles market. More than 70% of India's cotton exports were to China in the 2008-09 marketing year.
05 June, 2010 by admin