The government has initiated the policy of registration of cotton exports in order to ensure domestic availability of the commodity during the cotton season 2010-11.
The government has identified an exportable surplus of 5.5 million bales based on estimated production of 33 million tonnes in the country, minister of state for textiles Panabaaka Lakshmi informed the Rajya Sabha in a written reply today.
Registration of cotton export contracts has commenced from 1 October and there won't be any registration once the targeted 5.5 million bales have been contracted for, the minister stated.
Actual exports of cotton from the country commenced in November 2010 and have reached nearly 5.0 million bales so far.
Against this, India had exported 8.3 million bales of cotton in 2009-10, 3.5 million bales in 2008-09 and 8.5 million bales in 2007-08, according to the minister.
The government has received representations from various textile associations and industries demanding deferring of cotton export contracts till January 2011, staggering of shipments through a monthly cap, withdrawal of export incentive of 1.5 per cent etc to boost domestic availability of the commodity and to rein in prices.