India, the world's second-biggest producer of cotton, will give exporters more time to ship an allotted 5.5 million bales after they missed this total by a December 15 deadline, two government sources said. "Considering the domestic availability of cotton we have decided to give exporters additional time," said a source at the Textile Ministry, who declined to be named, speaking on Sunday.
India, also the world's second biggest exporter of the fibre, had allowed exports of 5.5 million bales from November 1 to December 15, but exporters failed to ship the entire quantity after unseasonal rains delayed arrivals in the spot market. Overseas demand for Indian cotton has increased after bad weather hit crops in China and Pakistan, both leading consumers. India is likely to produce more than 32.5 million bales of cotton in 2010/11, higher than last year's 29.5 million bales, industry and government officials have said. Exports so far have been around half the allowed amount after unseasonal rains hit supply and quality.
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