Online registration of cotton export contracts from Sep 15

The registration for cotton export contracts will be done by the Mumbai based Textiles Commissioner (TC). "The online system will be in operation with effect from September 15. On the commencement of the online system, the system of submitting the application in physical (through courier, post and hand delivery) will stand discontinued," the TC said.

The government has already announced lifting all restrictions on cotton exports for the crop year 2010-11 beginning October 1. However, the annual exports would be subject to a ceiling of 55 lakh bales (of 170 kg each) after which the export duty will kick in.

The introduction of the online system would help exporters know the status of their registration applications, and allow the government to keep a ready tab on the dispatches leaving the country.

Online registration is likely to help the exporters as the government has allowed them to ship up to 55 lakh bales (of 170 kg each) from October 1. Cotton marketing season begins from October.

The decision to shift to online system for registration and remove the restrictions was taken at a meeting of Commerce Secretary Khullar, Agriculture Secretary P K Basu and Textiles Secretary Rita Menon on first September.

As per a conservative estimates, the cotton production in 2010-11 is likely to be 325 lakh bales (of 170 kg each). However, the Ministry of Agriculture expects the yield to touch 335 lakh bales.

Increased exports and rising prices had led the government during April-May this year to suspend the registration of new export contracts. It also restricted shipments under the licence regime.