Indian Ministry of Commerce is expected to continue to prohibit the issuance of cotton export registration certificates

New Delhi: Although facing political pressure from various parties including parliament, the Indian Ministry of Commerce is expected to continue to prohibit the issuance of new export registration certificates.

Although will eventually be Finance Minister Pranab? Mukherjee’s group of ministers decided in the next few days, but the Ministry of Commerce and the Ministry of Textiles insisted on their position. They believe that opening the door for new cotton exports will lead domestic companies to have almost no cotton to meet domestic demand.

The Ministry of Commerce believes that exports are concentrated in the hands of a few people and only a few exporters are responsible for large-scale exports. In addition, most of the exports have entered China, and China is stocking large quantities of inventories. China's reserves have increased by more than 60%.

The Indian Ministry of Commerce issued a statement on Friday stating that it has completed the review of all export cotton contracts for land customs stations in India’s neighboring countries. According to the review, the General Administration of Foreign Trade will also determine the proportion of speculative exports.

India banned cotton exports on March 5. One week later, it opened half of the window. The government tried to re-verify the registration certificate issued on March 16, but this action was stopped on Thursday.

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