India to Cancel Export Duty, Export Restriction on Cotton as of October 1, 2010

As of October 1, 2010, India will start using open general licenses and cancel the export restriction and the export duty of RUPEE 2,500 per ton on cotton.

In April and May 2010, the Indian Government adopted a series of measures restricting the export of cotton so as to curb the large increase of domestic cotton prices.

In accordance with the new regulations, export contracts shall be subject to an export duty of RUPEE 2,500 per ton. Meanwhile, the export licenses shall be applied.

It is learned that as of September 2010, the office of textile commissioners will start registering export contracts. Exporters may register now so as to perform export contracts in October 2010 when new cotton comes into the market. The exporters shall conduct export registration at the textile commissioners although export of cotton will be classified into unrestricted products.

In addition, senior officials with the Ministry of Commerce, the Ministry of Textiles, and the Ministry of Agriculture will hold a conference on September 1, 2010 to examine cotton’s production prospect, demand, and prices, including the situation both at home and abroad so as to determine the export scale of cotton.