The textiles ministry favoured lifting of the 5.5 million bales cap on cotton exports for the year if production exceeds the estimate of 32.5 million bales, textile secretary Rita Menon said today.
Talking to reporters on the sidelines of a handloom and handicrafts fair at Dilli Haat, Menon said, "The textiles ministry would be the first to support the movement out of the country in the form of exports."
She, however, said the requirement of the domestic textile industry would be kept in mind before permitting exports beyond 5.5 million bales.
Further, Menon said the textiles ministry has recently set up a Yarn Advisory Board to take stock of the yarn availability in the domestic market. "The board has seen that there is a gap between the production and requirement by the mills. I feel when it will be strengthened, the gap between the yarn required and exported will be reduced," she said.
Domestic consumption of cotton is likely to be around 22 million bales this year. This still leaves a surplus of 5 million bales even at the current level of output estimate.
The Textiles Commissioner has started registration of cotton export contracts from 1 October and the actual shipments would start from 1 November.
The registration of contracts would stop automatically the moment the ceiling of 5.5 million bales is reached.