March 15, 2012

India to monitor cotton export conditions

Customs officials are being asked by India's Finance Ministry to monitor the conditions imposed by India's Commerce Ministry on cotton exports.

While lifting the cotton export ban, India's government had said that the actual shipments would be allowed only after the scrutinisation and revalidation of registration entitlements.

Considering the sensitivity of the issue, the Board desires that the field formation should strictly monitor the conditions imposed by the DGFT (under the Commerce Ministry), Central Board of Excise and Customs (CBEC) said in a circular today. The CBEC has directed all chief commissioners of customs and director generals of CBEC to monitor exports.

Before the ban, which was imposed on March 5, the government had issued registration certificates (RCs) for export of about 13 million bales (170 kilogrammes each) of cotton. Out of that, 9.5 million bales have already been shipped.

India's Commerce Ministry plans to scrutinise and revalidate the RCs for export of the remaining 3.5 million bales of cotton.