India allows limited cotton exports to Bangladesh

India allowed cotton exports to neighbouring countries such as Bangladesh and Pakistan via land route after scrutinising the export orders that were issued before the ban on cotton.
On March 5, India imposed a ban on cotton exports but the decision was rolled back following political pressure from India's ruling Congress Party and its key coalition partner Agriculture Minister Sharad Pawar who heads the Nationalist Congress Party.
However, the commerce ministry had decided that no fresh registration certificates would be issued for exports and it would scrutinise all the certificates issued before the ban.
Scrutiny of all registered contracts for export of cotton through the land custom stations with India's neighbours has been completed in the first lot, according to an official statement.
India, which is the second largest producer of cotton in the world, had issued registrations certificates for 130 lakh bales (170 kg each) of cotton before the prohibition and out of that 95 lakh bales were shipped.
India is expected to produce a record 340 lakh bales of the natural fibre in the 2011-12 crop year (July-June).Meanwhile, the commerce ministry has exempted 5,000 bales of Assam Comilla Cotton exports from the restrictions on the natural fibre shipments during the current marketing year ending September.
However, shipments against registration certificates would need to be completed within a period of 30 days.

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