India has cleared the way for exports of raw cotton, according to an article in the Wall Street Journal.
India banned cotton exports on March 5 to insure that domestic textile mills had access to a cheap local supply of raw cotton. India’s Commerce Ministry was forced to revoke the ban within a week after protests from cotton-producing states.
While lifting the ban, the government decided to scrutinize contracts covering cotton that had yet to be shipped. On Wednesday, April 18, it gave the go-ahead to export 1.9 million bales under those existing contracts, the article noted.
India could export as much as 1.5 million bales of cotton, or about a third of its production.
(For the original report on India’s ban on cotton exports, click here).