The government has allowed unrestricted exports of the fibre for the remainder of the current season due to fall in price and over availability.
"Now, exporters only have to register with the Directorate General of Foreign Trade (DGFT)," the Union Commerce Secretary, Rahul Khullar said.
The cotton season is between October and September. Cotton exports for the remaining two months (August and September) have now been put under OGL.
The state-run Cotton Advisory Board had revised the estimates of output upwards by 4.2 percent to 32.5 million bales.
The board also had sharply revised end-September cotton stocks estimate to 5.25 million bales for 2010/11, from an earlier 2.75 million bales.
With Agriculture Minister, Sharad Pawar consistently urging for allowing more cotton exports, the issue was reviewed at a meeting of secretaries in the Ministries of Commerce, Textiles and Agriculture, convened by Commerce Minister Anand Sharma on Saturday.
In October last year, the government had capped cotton exports at 5.5 million bales (170 kg a bale) to protect the domestic textile industry in the wake of rising raw material prices. Additional 1 million bales were allowed in June, after prices had corrected sharply.
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