India: Indian cotton export falls short as the deadline passes by

Government of India has set the export limit of 5.5 million bales allowing the physical shipment from November 1, 2010. Exporters are allowed to export with an approved Export Authorization Registration Certificate (EARC). Shipment period is restricted to 45 days from the date of issue of EARC by the government or December 15th, whichever is later. From sources, it is clear that the target export limit of 5.5 million bales has not been reached by the December 15th deadline.

As of December 16, 2010 (8.00 hrs IST), Government of India has issued EARC for 50 lakhs 23 thousand 1 hundred and 40 bales (roughly 5.02 million bales of 170 kg each). The government has rejected the export registration for 2 lakhs 72 thousand and 720 bales (roughly 0.27 million bales of 170 kg each). Per an official notification from the Office of the Textile Commissioner, India dated September 30th; the deadline for the shipment of the allowed 5.02 million bales was December 15th. Although, it will take a few weeks to know the actual exported amount, estimates are that 2.5 to 3 million bales would have been shipped by the December deadline. This leaves a shortfall of 2.5 to 3 million bales per the allowable maximum limit of 5.5 million bales.