The Indian Textile Ministry wants to regulate the export and export registration of cotton in order to better manage supply, demand and prices in the domestic market.
The Ministry of Textiles has already written to the Ministry of Commerce and the General Administration of Foreign Trade on this issue. It is reported that this proposal has been made by textile minister Anand. Sharma's signature. Sharma also concurrently serves as Minister of Commerce. The State Administration of Foreign Trade put forward a case of mistakes in the management of export registration.
It is highly likely that in the entire cotton season starting in October, cotton may be separated from the public general license. The Ministry of Commerce included cotton in the public general license period in the 2011-12 cotton season.
This is the result of a sharp rise in domestic cotton prices. In the domestic market, the current cotton season reaches 37,000-38,000 rupees / candi (1 candi = 356 kilograms). The Indian cotton factory has signed a contract for the import of 10 million bales of cotton and has imported 3 to 4 million bales in the past 2-3 months.
Until recently, India was still a major cotton exporter. India harvests 35.2 million bales of cotton each year, while domestic demand is only 26 million bales. At present, there is almost no inventory in the domestic market. This is a special situation.
According to reports, under the current purchase-driven, the amount of cotton reaching the big market began to shrink. This year, cotton production reached 33.6 million bales, of which 12.5 million bales had already been exported, mainly to China. Compared with the arrival of 200,000 bags per day in the peak season, the current arrival of cotton is only 15,000 bags/day.
At present, there are few stocks in the domestic market to satisfy the domestic market. This is a special situation, officials said.
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