The Directorate-General of Foreign Trade (DGFT) has apprised about the
Union government's decision to exempt cotton and yarn waste from the
extra cap of 10 lakh bales imposed on exports of the natural fiber for
the 2010-11 season.
The DGFT said the ceiling would not apply to export of cotton waste,
including yarn waste and garneted stock, though other conditions
regarding registration of export contracts would be applicable.
It may be recalled that the government had decided on June 8 to allow
exports of an extra 10 lakh bales (170 kg each) of cotton during the
current season, following a sharp decline in prices in the domestic
market.
In October last year, the government had imposed a quantitative
restriction of 55 lakh bales on cotton exports. However, with prices
plunging 38 per cent from April onwards, they have crashed to over Rs
40,000 per candy (356 kg) currently in the domestic market after
reaching a peak of Rs 62,500 per candy in March-end.
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