This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.bbc.co.uk/go/rss/int/news/-/news/world-asia-india-17256230

The article has changed 2 times. There is an RSS feed of changes available.

Version 0 Version 1
India bans all cotton exports with immediate effect India bans all cotton exports with immediate effect
(about 17 hours later)
India has banned all exports of cotton with immediate effect, the government has said, amid a decline in production.India has banned all exports of cotton with immediate effect, the government has said, amid a decline in production.
Diseases have damaged crops in several states, cutting yields, and exports have been higher than expected because of strong demand from China, which takes about 80% of Indian production. Diseases have damaged crops in several states, cutting yields, and exports have been higher-than-expected because of strong demand from China, which takes about 80% of Indian production.
Indian textile makers been concerned about shortages and high prices. Indian textile makers have been concerned about shortages and high prices.
India is the world's second-largest producer and exporter of cotton, behind China. India is the world's second-largest producer and exporter of cotton.
Analysts said the move would squeeze global supplies and push up prices.Analysts said the move would squeeze global supplies and push up prices.
"Export of cotton has been prohibited till further orders," said a statement from the Directorate General of Foreign Trade (DGFT)."Export of cotton has been prohibited till further orders," said a statement from the Directorate General of Foreign Trade (DGFT).
"Export against registration certificates already issued will also not be allowed," the statement said."Export against registration certificates already issued will also not be allowed," the statement said.
Futures upFutures up
India has already exported 8.5m bales of 170kg (375 lbs) in the financial year ending on 31 March, reports say, up from a government estimate of 8.4m bales made in January.India has already exported 8.5m bales of 170kg (375 lbs) in the financial year ending on 31 March, reports say, up from a government estimate of 8.4m bales made in January.
Contracts had been signed for nearly 10m bales to be exported in the period, including those already shipped, Reuters news agency says.Contracts had been signed for nearly 10m bales to be exported in the period, including those already shipped, Reuters news agency says.
The benchmark US cotton futures for May rose more than 4% to 92.23 cents on Monday on the news from India, Reuters said.The benchmark US cotton futures for May rose more than 4% to 92.23 cents on Monday on the news from India, Reuters said.
"It's an extremely bad decision," said Dhiren N Sheth, the president of the Cotton Association of India."It's an extremely bad decision," said Dhiren N Sheth, the president of the Cotton Association of India.
"It will harm India's reputation in the international market [and] we will suffer long term," he told the Financial Times."It will harm India's reputation in the international market [and] we will suffer long term," he told the Financial Times.
"More importantly, this is bad for farmers as the price of cotton will go down locally... We urge the government to rethink this regrettable decision," he said."More importantly, this is bad for farmers as the price of cotton will go down locally... We urge the government to rethink this regrettable decision," he said.