India won't allow extra cotton exports for now: Anand Sharma
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India will not allow additional cotton exports as of now though it could permit shipments already registered with the government after revalidating, trade and textile minister Anand Sharma said on Monday.
"Until further orders, there will not be any fresh registrations," Sharma told reporters after a panel of ministers met to review cotton exports from India, the world's second-largest producer, which banned shipments of the fibre in March.
India halted new cotton exports after traders shipped record 9.5 million bales of 170 kg each, much higher than a projected 8 million bales, but stepped back from a shock total ban saying it would review 2.5 million bales already registered but not shipped.
Around 1 million bales cleared by customs but not yet shipped at the time of the ban were also allowed.
India's cotton output is expected to hit a record high of 34 million bales in 2011/12.
"The quantities that were registered earlier are still being scrutinised and revalidated. Whatever quantities get qualified will be permitted (for exports)," Sharma said, when asked about the unshipped 2.5 million bales.
Government and trade sources said last month India was unlikely to allow new cotton exports until July.
India supplies about 13 per cent of global cotton exports and its biggest customer is China, which had criticised the initial total ban.
Domestic textile mills, which use about 25 million bales of cotton a year, have lobbied for the export ban on worries over supply shortages and soaring local prices.
Copyright @Thomson Reuters 2012