- India has cleared the way for exports of raw cotton under existing contracts, according to an article in the Wall Street Journal.
India has cleared the way for exports of raw cotton under existing contracts, according to an article in the Wall Street Journal.
(For more, see: Cotton carryover key to understanding market)
India banned cotton exports on March 5 to insure that domestic textile mills had access to a cheap local supply of raw cotton. India’s Commerce Ministry was forced to revoke the ban within a week, after loud protests from cotton-producing states.
While the government lifted the ban, it decided to scrutinize contracts covering cotton that had yet to be shipped. On Wednesday, April 18, it gave the go-ahead to export 1.9 million bales under those existing contracts, the article noted.
India could export as much as 1.5 million bales of cotton, or about a third of its production.