India bans cotton exports

India yesterday banned exports of cotton amid fears that its prices will shoot up due to declining production in the current season.
“Cotton exports have been prohibited till further orders,” the Directorate General of Foreign Trade (DGFT) said in a notification.
Exports against registration certificates already issued will not be allowed either, it said.
A US Department of Agriculture report has lowered India's cotton production estimates by about 7.5 lakh bales to 342.5 lakh bales during the current marketing year (October-September). One bale contains 170kg of cotton.
In 2010-11, India's cotton production was 33 million (330 lakh) bales.
The forecast has been brought down due to an estimated lower production in the key state Maharashtra where weather conditions have been less than favourable for the crop's growth.
State-owned Cotton Corporation of India has said cotton exporters and domestic mills are making brisk purchases to meet their immediate as well as lean season requirement of the fibre amid concerns of a production fall and expectations of a pick-up in demand from the yarn industry.
The poor quality of the present cotton crop, a rise in demand for yarn and reports of lower production are compelling exporters and domestic players to hike their purchases.
India, the world's second-largest cotton producer, had already exported 85 lakh bales as against 70 lakh bales last year.