Exporters in India Must Reapply for Registration Certificates

The Indian government has announced that exporters must reapply for registration certificates before they can ship cotton to foreign buyers. Per a statement issued by officials on Dec. 30, exporters will have from Dec. 31 through Jan.6 to apply for the certificates from the Director General of Foreign Trade, and must physically ship the fiber within 30 days of receiving permission.

Still undetermined, however, is the exact amount that will be exported. The government initially approved the shipment of 5.5 million bales (170 kg) of cotton with a deadline of Dec. 15. However, only a little more than half of that amount (3 million bales) was shipped by that date. The remaining 2.5 million bales was delayed, initially by unseasonal rains and later by extreme congestion in the nation’s ports.

With production in some of the world’s top cotton-growing countries severely diminished by inclement weather, there is tremendous demand for any cotton that India makes available–particularly in China and Pakistan, which suffered through droughts and flooding, respectively, in 2010.