New Delhi: The government on Thursday said it has scrutinised and given approval to export of one million cotton bales, of the 2.5 million bales that was registered for overseas sales before the export ban was imposed.
On March 5, the government had banned export of cotton briefly for a week. However, it decided to permit shipments only after revalidating the cotton quantity that was registered for export with Directorate General of Foreign Trade (DGFT) before the ban.
About three million bales of cotton was registered with the DGFT. Of which, the government has already cleared the export registration certificates (RC) for 5,00,000 bales.
"As of April 11, RCs in respect of about one million bales were revalidated for exports," an official statement said. One bale contains 170 kg of cotton.
The DGFT has completed the scrutiny of the remaining applications and the RCs for another 9,00,000 bales of cotton will be revalidated by April 17, it said.
Export of approximately 1.9 million bales of cotton would give a fresh impetus to cotton prices and would benefit both farmers and exporters, it added.
The priority has been given to cotton that had been pending for export through land route to neighbouring countries such as Bangladesh, Myanmar, Pakistan, Nepal and Bhutan. Besides, the priority has also been given to cotton that was lying with customs.
The country has exported 10 million bales of cotton so far in the 2011-12 marketing year ending September as production is estimated to be higher than domestic demand.
Cotton production in India, the world's second biggest grower, is expected to be a record 34 million bales in the 2011-12 crop year (July-June).