India to Register Cotton Exports From Oct. 1, Fortnight Later Than Planned.

India, the world’s second biggest cotton grower, will begin registration of export contracts from Oct. 1, a fortnight later than planned, Textile Secretary Rita Menon said in New Delhi today, without giving more information.

The government must halt registration of export contracts in the October-December period to increase domestic supplies, the Confederation of Indian Textile Industry said yesterday. India must impose export duty of 10,000 rupees ($215) a metric ton to discourage shipments, it said.

India will limit exports to 5.5 million bales in the season starting Oct. 1, Commerce Secretary Rahul Khullar said earlier this month. Exports beyond that level will attract a “prohibitive” duty, he said.

Cotton extended a rally to the highest price in almost 15 years amid tightening global supplies of the fiber. China’s crop is in worse condition this year than at the same time in 2009 after low temperatures and prolonged rains delayed planting and crop development, the official Xinhua News Agency reported on Sept. 11. China is the world’s largest grower.

Cotton futures for December delivery rose 1.62 cents, or 1.7 percent, to 94.33 cents a pound at 10:30 a.m. on ICE Futures U.S. in New York. Earlier, the price rose to 94.5 cents, the highest level for the most-active contract since Sept. 22, 1995.

Source : bloomberg.com