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India Cotton Export Registration Policy Extended

29 October 2012
USDA Foreign Agricultural Service

INDIA - Earlier this month India’s Ministry of Commerce and Industry issued a notification on procedures and conditions related to cotton export registration for the 2012/13 marketing year.

Cotton exports will be allowed to continue under Open General License without any quantitative limits on exports.

The policy limits exporters to registering 10,000 170 kg bales (7,800 480 lb bales) at a time, a requirement designed to ration export registration by preventing exporters from registering large volumes of cotton for export over a short period of time.

Exporters must export 50 per cent (5,000 bales) of a registration before they can register an additional 10,000 170 kg bales. Exporters will now also be required to notify DGFT by e-mail of their intent to register additional quantities followed by a hard copy of their application within two working days.

The Government of India has experimented with a variety of cotton export procedures and controls over the past three years in an effort to monitor or control the volume of exports.

The process has, at times, resulted in unintended consequences as exporters registered or exported larger than expected volumes of cotton, prompting the government to enact harsher export controls.

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