India lifts ban on cotton exports
updated 9:39 AM EDT, Sun March 11, 2012
An Indian worker sorts cotton at Patel Cotton Industries, Ginners and Exporters, in Dhrangadhra, India in December 2011.
- India will end its export ban after six days, the trade minister says
- The South Asian nation is the world's 2nd largest cotton producer
- The China Cotton Association had complained the ban seriously disturbed the international trade
- Analysts had said the ban could spike consumer prices for cotton goods
New Delhi (CNN) -- India will end a six-day ban on cotton exports that impacted global commerce, the country's trade minister said Sunday.
The South Asian nation is the world's second-largest producer of the commodity. Its March 5 ban aimed at boosting domestic supplies in light of a surging export surplus drew criticism from domestic farmers, political leaders and a key Chinese trade lobby.
"Keeping in view the facts, the interests of the farmers, interest of the industry" and other concerns, India's group of ministers decided to roll back the ban, Trade Minister Anand Sharma said in a statement.
The prohibition had drawn flak from businesses in China, which is the biggest buyer of Indian cotton.
In a statement Thursday, the China Cotton Association called the ban an "irresponsible act" that ended "a large number of registered contracts" and "disturbed international cotton trade order seriously."
As fury grew, Indian Prime Minister Manmohan Singh ordered a quick review of the decision.
U.S. cotton futures surged last week after India announced the ban, igniting fears of another jump in prices for cotton goods.
Officials in India explained they were concerned about a supply crunch in the country.
"This India development really caught the entire cotton industry and traders off guard because it came with no warning," Phil Flynn, senior market and commodities analyst with PFG Best, told CNN last week.
Last year, when cotton prices hit an all-time high due to a global supply crunch, manufacturers first raised prices, then used less cotton and more blended fabrics such as poly-cotton.
Cotton prices cooled off toward the end of last year, Flynn said.
CNN's Josh Levs contributed to this report.
Part of complete coverage on
updated 10:26 AM EST, Wed February 6, 2013
Advocates say the exam includes unnecessarily invasive and irrelevant procedures -- like a so-called "two finger" test.
updated 7:09 PM EST, Tue February 5, 2013
Supplies of food, clothing and fuel are running short in Damascus and people are going hungry as the civil war drags on.
updated 1:01 PM EST, Wed February 6, 2013
Supporters of Richard III want a reconstruction of his head to bring a human aspect to a leader portrayed as a murderous villain.
updated 10:48 AM EST, Tue February 5, 2013
Robert Fowler spent 130 days held hostage by the same al Qaeda group that was behind the Algeria massacre. He shares his experience.
updated 12:07 AM EST, Wed February 6, 2013
As "We are the World" plays, a video shows what looks like a nuclear attack on the U.S. Jim Clancy reports on a bizarre video from North Korea.
The relationship is, once again, cold enough to make Obama's much-trumpeted "reset" in Russian-U.S. relations seem thoroughly off the rails.
Ten years on, what do you think the Iraq war has changed in you, and in your country? Send us your thoughts and experiences.
updated 7:15 AM EST, Tue February 5, 2013
Musician Daniela Mercury has sold more than 12 million albums worldwide over a career span of nearly 30 years.
Photojournalist Alison Wright travelled the world to capture its many faces in her latest book, "Face to Face: Portraits of the Human Spirit."
updated 7:06 PM EST, Tue February 5, 2013
Europol claims 380 soccer matches, including top level ones, were fixed - as the scandal widens, CNN's Dan Rivers looks at how it's done.
updated 7:37 AM EST, Wed February 6, 2013
That galaxy far, far away is apparently bigger than first thought. The "Star Wars" franchise will get two spinoff movies, Disney announced.
updated 2:18 AM EST, Fri February 8, 2013
It's an essential part of any trip, an activity we all take part in. Yet almost none of us are any good at it. Souvenir buying is too often an obligatory slog.