Press Information Bureau

Government of India

Ministry of Textiles

12-December-2012 18:04 IST

In cotton season 2011-12 India’s cotton production was 6 million tons of the world crop size of 27.28 million tons which was 21.99 percent. In cotton season 2012-13 India’s production is projected as 5.64 million tons of world crop size of 26.08 million tons which is 21.62 percent, the difference being marginal. India’s cotton balance sheet shows an exportable surplus of 0.74 million tons.

India’s cotton prices are currently USD 5 cents/ lb below the COTLOOK index. Cotton markets are functioning in an orderly manner and no policy interventions other than minimum support price operations in some cotton growing States are envisaged.

The cotton distribution policy is reviewed on a regular basis.

Cotton exports have been placed on open general licencing category subject to registration by DGFT effective October 1, 2012. The limit of registration of a registration certificate was raised from 10,000 bales to 30,000 bales in November, 2012. There is adequate cotton available in the country for domestic consumption.

This information was given by the Minister of Textiles, Shri Anand Sharma in a written reply in the Rajya Sabha today.

DS/RK

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Cotton export licensing moved to open general licence with DGFT registration, balancing exports and domestic supply stability. India experienced a slight production decline yet maintained an exportable surplus and adequate domestic availability; markets traded below the COTLOOK benchmark with orderly functioning. The Government limited intervention to minimum support price operations in some States and regularly reviews cotton distribution policy. Cotton exports were shifted to an open general licence regime requiring DGFT registration, and the registration certificate limit was raised to facilitate exports while preserving domestic supply.