“The government had
earlier allowed 5.5 million bales for exports during the cotton season
2010-11 (October-September), but exporters failed to ship the entire
quantity after unseasonal rains delayed arrivals in the spot market. The
entire shipment quota was to be completed by December 15. ..Now
the government has provided the exporters to ship the remaining quantity
of 2.5 million bales of cotton. Second phase of registration for the
exports ended on January 6 and the government will decide on the
specific allocation of quantity for traders by Monday. ..After bad
weather hit the crops in China and Pakistan, there is an increased
demand for India cotton abroad, India is also the second biggest
exporter of the fibre. ..At the same time India’s $62 billion
textile industry was heavily concerned over the India government’s plan
to extent the exports of cotton. Domestic traders are worried that
delays in exports and the issuance of export licenses could
significantly increase domestic inventories, causing cotton prices to
plummet at home, the textile industry, expecting seasonal delays, had
asked for a ban on current exports to ease unusually high prices. ..On
the International front, the prices saw a sharp fall in anticipation of
more flow from India into the global market. Global markets were
suffering from the delayed and dwindled cotton exports from India. India
is one of the top exporters of cotton..”