Kapas futures that halted for few days after government
order to remove ban on Cotton exports is set to decline again. The Government
has said that the rollback of export ban is only on the orders that were
registered but were not shipped. No fresh registration certificates will be
issued. This has created an uncertain environment among exporters, farmers and
stakeholders in Cotton. www.goldennifty.com
Meanwhile,
Industry body ASSOCHAM said the government's decision to lift the ban on cotton
exports are a wise decision at the right time. Exporters had to pay heavy
penalties for not honoring their commitments to international buyers.
In the
domestic market, cotton prices crashed which is against the farming community.
“We were never in favour of the ban,” said secretary general D.S. Rawat.
“India, the world's second biggest cotton producer should be able to supply 20
per cent of global exports in 2011-12.” www.goldennifty.com
Kapas
futures have opened at Rs 805.5 per 20 kg on MCX. The prices are set to decline
below Rs 800 if fresh exports remained banned as demand is already lagging
behind production. The total demand for Cotton in India is 20 million bales, as
against national production of 33 million bales. Powered By ET
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