Following Revised Production Estimates Cotton Advisory Board, Centre allowed further Cotton Export

The Union government in the meeting of informal group of ministers chaired by Finance Minister Pranab Mukherjee on 30 April 2012 decided to allow further cotton exports in the 2011-12 marketing year ending September 2012 following the upward revision of production estimate.

The government had in March 2012 lifted the ban on exports but had decided not to issue fresh registration of certificates (RCs). It only allowed shipments for which RCs were already issued before the ban was imposed on 5 March 2012. India exported 113 lakh bales so far in the current cotton season. Prior to the imposition of the ban the government had issued RCs for about 130 lakh bales.

The decision was based on revised production estimates of the Cotton Advisory Board as well as the Agriculture Ministry. As per the decision, there would not be any quantitative restrictions on registration.

The Cotton Advisory Board (CAB) had in April 2012 revised production estimates upwards to 347 lakh bales from 345 lakh bales for the 2011-12 season. It also revised domestic consumption estimates downwards to about 250 lakh bales from 260 lakh bales earlier. The Agriculture Ministry too revised upwards cotton output to 352 lakh bales from 340.8 lakh bales.