India may allow export of cotton from October - report

MUMBAI (Reuters) -India is likely to allow exports of cotton freely without any tax from October and a notification regarding this may be issued in two weeks, the Economic Times reported on Wednesday.

However, there would be a cap on the amount of fibre to be shipped, the paper said.

India halted export registration on April 19 and allowed exports under license on May 21 in a bid to rein in prices.

“We expect free exports will be allowed from October considering the possibility of higher output,” head of a cotton trade association and member of CAB had told Reuters a week ago.

India is the second-biggest producer, consumer and exporter of cotton and about 60 percent of the current season shipments went to China, the biggest consumer.

India farmers have planted cotton in a record 10.34 million hectares as on Aug. 5, already a shade better than last year’s 10.33 million hectares, government data showed on Friday.

Reporting by Sourav Mishra; Editing by Ramya Venugopal