Indian Officials Warn Exporters: No Second Chances

Although the Indian government has agreed to allow the export of 6.5 million bales of cotton (170 kg) this season–a million bales more than last year’s export cap–exporters who don’t follow the letter of the law won’t have an opportunity to correct their mistake in the future.

That’s because those who do not physically ship the full amount allocated to them, within the stipulated timeframe, will be banned from future export allocations. In addition, the defaulters will be hit by a fine of at least $223, but not more the five times the value of the fiber. Only those who have received allocations to export in one of the past two years is eligible. The maximum quantity that will be made available to any one applicant is 25,000 bales, officials said.

Export applications will be accepted until June 25, with the entire quota being allocated by July 6. Then, starting on July 7, exporters will have nine days to submit their documents to the Directorate General on Foreign Trade. All shipments must be completed by Sept. 15.