NEW DELHI (Commodity Online): India is unlikely to ban cotton exports as stocks are sufficient to meet demand from domestic mills and for exports, the government said in a release on Thursday.

The union minister of state for textiles, Panabaaka Lakshmi said in a statement today, “No proposal is under consideration for banning the cotton export at this stage.”

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India's cotton output in the cotton season ending September has increased to 29.5 million bales (1 bale = 170 kilograms) from 15.8 million bales in 2001-02 due to use of Bt-cotton, the minister said.

The government clarification came after talk that rising exports may lead to a rally in cotton prices and thereby attract government action. The country's cotton exports in Oct-Feb period was 4.13 million bales, sharply up from 1.17 million a year ago. India is the world's second largest cotton exporter.

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