Cotton Traders Rush to Register for Export.

New Delhi: Within days of opening the registration, exporters have applied for about 30% of the cotton permitted for exports in the backdrop of high global prices.

Of the 55 lakh bales (170 kg each) allowed for exports in the current season, traders have already applied for 16.44 lakh bales, leaving the balance of 38.56 lakh bales open for registration, according to the official data.

The export registration is being done, for the first time, online. This will ensure “transparency” and reduce transaction costs. It opened on October 1.

Despite the projected record level of production this season, beginning October, prices in the domestic market are ruling 68% higher than Rs 22,400 (per candy) in the same period last year.

In the New York Futures market, cotton prices are ruling at 98.02 cent per pound compared to 61.34 cent per pound in the same period last year. The inter-ministerial panel had set a ceiling of 55 lakh bales for export for 2010-11 (October-September) even though the textile industry has been demanding export duty of Rs 10,000 per tonne to boost the domestic availability of the natural fibre.

India is expected to harvest 325 lakh bales of cotton this year. The domestic demand is estimated at 220 lakh bales.

Senior ministers including Pranab Mukherjee, Sharad Pawar, Anand Sharma and Dayanidhi Maran had recently reviewed the situation in regard to the availability and export.

Source : financialexpress.com