India's five textile companies took away export agency registration permits

Five major companies have secured 51% of the issued Export Agency Registration Permits (EARCs), enabling them to ship a total of 850,000 bags of cotton, each weighing 170 kilograms. This marks a significant shift in India’s cotton export policy, as the central government has now opened the door for registered cotton exports starting from October 1st.

As of Saturday, the Textile Commissioner’s office had received a total of 996 shipment applications, amounting to nearly 4 million bags of cotton. However, it's important to note that registration alone doesn't guarantee immediate shipment. Instead, obtaining an EARC ensures that the goods will be shipped starting November 1st, provided they comply with any new regulations that may be introduced by the government at that time.

The central government has authorized the export of 5.5 million bales of cotton beginning in November. Before issuing permits, authorities carefully evaluated the performance of each company to ensure reliability and compliance with export standards.

According to data released by the Textile Commissioner’s Office, global trading giants like Cargill, Louis Dreyfus, and Orland International have collectively secured 11% of the issued EARC licenses. Meanwhile, Bhadresh Trading Company, based in Mumbai, has taken 20% of the permits, allowing them to export a total of 181,000 bags, placing them among the top exporters.

DML Import and Export Corporation in Rajkot received 94,117 export licenses, while Jaydeep Cotton Fibers, another Rajkot-based firm, received 66,423. Together, these three companies account for 40% of all export licenses issued so far.

Other notable companies include Gill Private Limited in Mumbai, which obtained 54,076 licenses; KKM International in Mumbai, with 47,058; and companies from Kolkata and Calcutta, which received 44,411 licenses. MEP Cotton Co. also secured 44,117. When combined, the top seven companies have received a total of 62% of the export permits.

Cargill India Pvt. Ltd. has secured 38,000 permits, while Orland International, based in India, and France’s Luis Dover obtained 33,823 and 26,529 licenses respectively. These figures highlight the concentration of cotton exports in the hands of a few key players.

Indian textile industry officials have pointed out that at least 80% of cotton exports are controlled by a small group of large exporters. This raises concerns, as the cotton sold by these exporters is sourced from merchants rather than directly from farmers, meaning the benefits of these exports do not reach the agricultural community.