“Now the export of cotton is allowed under license. This is with immediate effect,” said BA Patel, joint textile commissioner…India on April 19 had stopped cotton export registration to control soaring local prices, tightening global supplies including top consumer China. ..“This order now supersedes the earlier order issued in April,” Patel said…India had shipped 6.26 million bales of the fibre and had registered 8.6 million bales before halting further export registration, government data showed…“It’s good for raw cotton exporters. Prices may go up once again,” said Chowda Reddy, a senior analyst at Kochi-based JRG Wealth Management…Cotton prices had fallen upto 20 per cent in the past one month, though they are still about 34 per cent higher than prices that prevailed during the same period last year, government data showed…Analysts and traders said the decision just as the planting season begins will boost the acreage…“This decision will give farmers get better prices and boost acreage but it is uncomfortable for the textile industry,” said Rakesh Rathi, president, North India Cotton Association…China, which buys more than 60 per cent of Indian exports is also likely to benefit from the decision. China has issued an extra 800,000 tonnes of cotton import quotas this month on top of 1.89 million tonnes issued early in the year and the government may issue more if there is demand, the China Cotton Association said on Friday.”
Date:5/22/2010
Source:www.business-standard.com