India may not restrict cotton exports in 2011-12

India's 2011-12 cotton year will start next month, and India may not restrict cotton exports in 2011-12. However, the Indian government has not made a final decision on this matter. As production expectations increase and world demand is weak, next year’s cotton exports may maintain open general license management.

However, the government has not yet made a final decision. Indian cotton is from October to September of the following year. At the beginning of last month, the government cancelled the export restrictions on natural fibers and allowed exports to be managed according to the Open General License, which ends at the end of this month. This year, the government initially allowed the export of 5.5 million bales of cotton, which was later increased by 1 million bales.

According to the Cotton Advisory Committee (CAB) report, cotton exports may expand to 7 million bales in 2011-12. The output is expected to increase to 35.5 million bales next year, compared with 32.5 million bales this year. In 2011-12, the country’s annual consumption also increased to 26.4 million bales, compared with 23.6 million bales this year.