Ban On Export of Cotton to be Lifted - Pawar Power
NOTIFICATION No. 102(RE-2010)/2009-14 dated 05.03.2012 had prohibited export of cotton (Tariff Codes 5201 & 5203). This notification had also stipulated that
(i) transitional arrangement under para 1.5 of FTP will not be applicable and
(ii) export against registration certificates (RCs) already issued will also not be permitted.
DDT 1810 - 07 03 2012 had said, “Ban on export of cotton is not simple economics; it is complicated politics. So, now the matter goes to a Group of Ministers headed by Finance Minister Pranab Mukherjee. The GoM is to meet on Friday to sort out the issue. It is almost sure that the ban will be lifted on Friday” .
Well, it is going to be done today. Government has decided to lift the ban on export of cotton and the notification is expected today. India is the world's second largest producer of cotton and a ban on export of cotton from India has global repercussions. China Cotton Association called the ban an "irresponsible act" that ended "a large number of registered contracts" and "disturbed international cotton trade order seriously”. This would have caused a big ruckus in Parliament today. Any way, wiser counsel prevailed.
On March 9th, the DGFT issued a Circular to the effect that any consignments for which Let Export Orders (LEOs) have been issued till 2400 hours on Sunday, 04 March, 2012 will be outside the purview of Notification No.102 dated 05 March, 2012. - DGFT Policy Circular No. 58/(RE-2010)/2009-14 Dated: March 9, 2012.
Similarly, the CBEC issued a Circular quoting the DGFT Circular desiring that field formations shall allow the export of consignments of Cotton (TH 5201 and 5203) for which ‘Let Export Orders' have already been issued till 2400 hrs on 04 -03-2012. - CBEC Circular No. 7/2012-Cus., Dated: March 9, 2012
Now, these Circulars are not relevant as the ban on export itself is to be lifted today.