Cotton exports not to be allowed beyond 55 lakh bales: India

ERODE (Commodity Online) : With the textile minister of India giving thumbs down to cotton exports, it is likely that no extra bale of cotton would be exported from India.
Currently, the India government has capped the exports at 55 lakh bales of which 38 lakh bales have already been exported.
"The government will allow export of only 55 lakh bales of cotton which is surplus and on no account we will allow more cotton to be exported," Union Textile Minister Dayanidhi Maran was quoted by Business Standard as saying on Saturday.
Last week on Friday, the agricultural minister of India had said that cotton exports may further be allowed on production estimates of 33.5 million bales in 2010-11 crop year, an improved estimate.
Cotton yarn had hit high prices on limited supply prompting the India government to scrap exports of 1 million bales of cotton from India to Pakistan. Pakistan retaliated with an embargo on exports of land bound onions to India, pushing up inflation here.
Maran was laying the foundation stone for the Rs 145 crore integrated textile mall 'Texvalley' at Gangapuram in Erode.
The mall is the first of three sanctioned in India and two of the other malls would come up in Rajasthan and Maharashtra states of India.
The government has declared that it would grant Rs.70 crore in subsidy to the Erode mall which is spread over 15 lakh square feet and housing 1720 shops with merchants having all facilities to sell their products.
The first phase of the venture would come up in nine months and once full-fledged, would provide employment to over 5000 people directly and other 10,000 people indirectly.
The project would be complete in a total of 15 months.

(Source: http://www.commodityonline.com/news/Cotton-exports-not-to-be-allowed-beyond-55-lakh-bales-India-35894-3-1.html)