| GEO Business|
| India lifts ban on cotton exports|
| Updated at: 1932 PST, Saturday, May 22, 2010|
MUMBAI: India on Friday allowed export of cotton under license just as new plantings begin and a month after it halted shipment registration to rein in domestic prices, an official with the textile ministry told Reuters.
"Now the export of cotton is allowed under license. This is with immediate effect," said BA Patel, joint textile commissioner.
India on April 19 had stopped cotton export registration to control soaring local prices, tightening global supplies including top consumer China.
"This order now supersedes the earlier order issued in April," Patel said.
India had shipped 6.26 million bales of the fibre and had registered 8.6 million bales before halting further export registration, government data showed.
"It's good for raw cotton exporters. Prices may go up once again," said Chowda Reddy, a senior analyst at Kochi-based JRG Wealth Management.
Cotton prices had fallen upto 20 percent in the past one month, though they are still about 34 percent higher than prices that prevailed during the same period last year, government data showed.
Analysts and traders said the decision just as the planting season begins will boost the acreage.