India Cancels Cotton Export Restriction And Expands Sales To China'S Clothing And Textile Industry

India is the second largest cotton producer and exporter in the world, and a government official said that India will cancel its restrictions on overseas sales in the new cotton year as it is expected that the output of new cotton will be higher.

Josh, India's A.B. Joshi, said in an interview yesterday in Mumbai that measures to restrict exports will be lifted next year.

These measures were launched in April and are very temporary measures.

In order to cool the domestic cotton prices and maintain the supply of goods, India stopped its export registration and introduced a new export permit system in the latter month.

India's large domestic production and the resumption of cotton sales may put pressure on global cotton prices, thereby reducing the cost of Gap, Wal-Mart Store Inc and JC Penney Company, which purchase clothing from South Asia.

Josh said that the cotton year of India began in October 1st, and the output could be high because of the enlargement of planting area.

Nair, Secretary General of India Textile Industry Federation, said that the total output of new year's beginning in October 1st could reach 32 million 500 thousand packages, larger than 29 million 200 thousand packages this year, D.K. Nair.

India may expand its sales to some importing countries, including China. China is the largest cotton consuming country. The China Cotton Association said that China will increase its import quota to about 1 million tons, while putting more national cotton stores to meet market demand.

According to the textile Commissioner's office, from October 1st to June 15th, China's imports of cotton from India accounted for 57% of India's export volume of 7 million 380 thousand packages.

The total export volume doubled from the same period last year.

Qiao Xi said that China's appetite is very large, because they may continue to import India cotton.

According to the new licensing system, about 300000 bales of cotton registered before April 19th were allowed to be exported to Bangladesh and Pakistan.

The remaining 500000 bales of cotton will be exported in the next few months.

Josh said that the number of registered but not shipped out this year may be licensed, but not a new one.

Next year, India will abolish the license system and restore the export registration system.

In India, the weight of each bales of cotton is 170 kilograms (350 pounds).