Registration for cotton exports suspended

The textile commissioner has suspended cotton exports registration saying they have received applications equivalent to the quantity earmarked for this season that is 5.5 million bales.

“We have received applications for the stipulated quantity of 5.5 million bales (1 bale = 170 kg) of which nearly 1.58 million bales have already been approved. Export authorisation registration certificates (EARCs) for the approved quantity of 1.58 million bales have already been issued,” said Textile Commissioner A B Joshi.

Applications for the remaining quantity are under scrutiny and approvals would be given in the next few days.

“All applications would not yield into EARC. Some of them are bound to be rejected on various grounds including incomplete applications, lack of details and letter of credit (LC) from banks etc. The difference between allotted quota and approved quantity will be filled by new applicants,” Joshi clarified. As on October 11, the government received applications for export of 5.5 million bales of cotton of which quantity 7058.82 bales were rejected.

The group of ministers late last month decided to permit export of 5.5 million bales in 2010-11 marketing season for which registration with textile commissioner started on October 1. The shipment, however, is expected to start from November 1. The government had kept cotton under the restricted list of exports in 2009-10, as exports had hit a record 8.3 million bales, resulting in a sharp rise in domestic prices.