Commodity Online NEW DELHI: After the ban on maize exports, Indian commodities markets are abuzz with rumours that the Centre may ban export of more commodities.
According to traders, the market is fearing that in a bid to rein in the rising inflation, which stood at 11.63% for the week ended June 21, the Cnetre may impose ban on several other commodities.
However, a statement by a senior government officials in Mumbai on Friday brought some relief to cotton traders.
JN Singh, joint secretary, ministry of textiles, said that the Centre has no plans to ban cotton exports but may cut the import duty to boost supplies and ease prices.
The government on Thursday had banned maize exports till October 15 to help domestic poultry industry by increasing supplies and lowering of prices.
The domestic textile industry has been seeking a ban on cotton exports to tame record prices.
Prices of popular Shanker-6 variety of cotton touched a record Rs 28,500 per candy last month, from about Rs 21,000 in the same period last year.
India has emerged as a major exporter and is likely to export 8.5 million bales of cotton in the year ending September 2008, up 47% from 5.8 million bales last year.
To help tame prices in the local markets, the government may lower import duty on cotton from current levels of 10%.
Advance sale of cotton for December and January delivery is being done at record prices, mainly by exporters and large traders. High prices have pushed down demand from the local mills.
