Cotton exports may remain unrestricted for 2011-12: Menon

India's cotton exports are likely to remain unrestricted for the 2011-12 season starting next month, but the government is yet to take a final decision on the matter, a top textile ministry official said today.

"Exports of cotton are likely to remain under Open General Licence (OGL) for the next cotton season on account of better production estimates and sluggish world demand. However, a final call is yet to be taken," Textiles Secretary Rita Menon told reporters.

The cotton season runs from October to September.

Early last month, the government removed restrictions on the export of the natural fibre and permitted shipments under OGL till this month-end.

For the current season, the government had initially allowed exports of 5.5 million bales of cotton. Later, another 1 million bales were permitted.

According to the Cotton Advisory Board (CAB), the cotton export is estimated to rise to seven million bales in the 2011-12 season.

The production is estimated to increase to 35.5 million bales next season as against 32.5 million bales in the current season. The annual domestic consumption has also been pegged higher at 26.4 million bales for the 2011-12 season as against 23.6 million bales.