Government to initiate action against ‘erring’ cotton exporters

The Commerce Ministry norms specify that cotton exporters who fail to transport the quantity allocated to them within the stipulated period, will be debarred from future allocations.

The Directorate-General of Foreign Trade (DGFT) has made it clear that it will initiate penal action against defaulting exporters.

It may be recalled that the government had to put a ceiling on exports through a quota in the wake of shortages.

While initially the quota allocation was 55 lakh bales (170 kg each), it was later augmented to 65 lakh bales. For the current season ending September, the government has given the nod for export of additional 10 lakh bales.

The DGFT mentions that "(exporter) shall be liable to pay a penalty of not less than Rs 10,000 and not more than five times the value of the goods or services or technology in respect of which any contravention is made or attempted to be made, whichever is more."