Chinese demand may fan India’s cotton exports
The cotton crop in the US is expected to be 1.4% lower than estimated in December, the US Department of Agriculture said earlier this month. Moreover, a latest report by Rabobank that the US harvest may drop to 14 million bales this year from 17 million a year before drove up the fibre's prices.
An Indian ministerial panel in November decided the exportable surplus of seven million bales — as was determined by the CAB then — would be adehered to in the registration of shipment contracts during 2012-13. The panel comprised agriculture minister Sharad Pawar, finance minister P Chidambaram and textiles and commerce minister Anand Sharma. To facilitate exports, the ministerial panel had also relaxed cotton shipment registration rules. Traders can now export up to 30,000 bales of cotton against each contract compared with 10,000 bales.
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