India has made an exception to the ban on cotton exports just a few days after it was imposed, according to a report by the Wall Street Journal.
Under the new ruling, consignments for which paperwork has been finished before March 4 can be exported, the Indian government stated. Consignments have to be registered with the government and the necessary customs clearances need to be obtained before export.
The government claims that the ban on cotton exports has been taken to ensure domestic supplies are not jeopardized and also to keep prices stable. A ministerial panel is expected to review the ban. The ban has faced stiff opposition from chief ministers of grower states who feel it will hit the local farmers hard.
The Union Minister for Agriculture, Sharad Pawar has also opposed the ban. Indian exporters have already shipped out 9.4 million bales of cotton, more than the projected quantity of 8.4 million bales. Increased exports have resulted in low carry-over stocks of 3.6 million bales at the end of the season, according to the source.