The government move to suspend registration of cotton exports and shipments against past registration has sent alarm bells ringing in the cotton sector. The registered but unshipped quantity as reported by the Textile Commissioner's office on the day of the announcement is around 25 lakh bales. These contracts between Indian exporters and their foreign buyers have been entered into several weeks ago and exporters had prepared for shipments after registering these with the Commissioners office, said Dhiren N Sheth,president,Cotton Association of India. Sheth warned that exporters would be subjected to huge losses apart from claims and arbitrations from buyers following the government move. Asking the government to withdraw the ban,Sheth said local prices have risen only because of continuous purchases by spinners who have been realising excellent value for their yarn and in reaction to higher cotton prices in the international market. The rise in yarn price has been more than proportionate to the rise in cotton prices and is chiefly linked to strong interntionaol demand for textile products, he said. According to him,any move to control cottom export would once again result in India sidelined and the Indian farmer once again left to the mercy of the mills sector. The Cotton Advisory Board had proposed a marginal reducion of three lakh bales in production estimates,but raised exports substantially by 25 lakh bales.
