The Indian government banned the exports of cotton with immediate effect, reports Reuters. This move has been made with the aim of protecting the country’s domestic textile industry. The announcement was made by the Directorate General of Foreign Trade (DGFT) via a notification.
"Export against registration certificates already issued will also not be allowed," the notification stated.
This measure comes in the wake of the Cotton Advisory Board’s estimate in January this year that cotton harvesting in 2011-12 will fall to just 34.5 million bales.
In the current year, India has exported 8.5 million bales of cotton already, as against the government estimate of 8.4 million bales for the entire year. More than 80 percent of the exports have been made to China. There had been considerable concern from textile traders in the country over the rising cotton exports. Textile makers had been worried that exports on such a large scale would reduce the availability in the domestic market.
The announcement, however, has drawn flak from industry experts. “It is a very regretful decision and this will permanently damage the reputation of the country in the international market," stated Dhiren N Sheth, president of the Cotton Association of India.