The government today announced a ban on all exports of raw cotton, including those for which registration certification have been issued, as the country's cotton exports neared one-third of its current production.
The Directorate General of Foreign Trade issued a notification early this morning announcing a ban on all exports of cotton, including those already registered for exports.
The ban, which caught shippers, industry and growers unawares, follows registration of over 12 million bales (of 170 kg each) of cotton for exports.
Actual shipments of cotton from the country has crossed 8.5 million bales in the current marketing year (October-September 2011-12) against 6.6 million bales shipped overseas in the 2010-11 marketing year.
The country recorded production of 35.5 million bales of cotton in the current crop year, the highest so far. The country produced 32.5 million bales of cotton last year.
The ban comes on the back of a textile ministry statement last week that there was enough cotton left in the country for exports and that the domestic industry will not be able to absorb the surplus production at a time when the industry is facing recessionary conditions.