The government has banned exports of cotton to increase supply of the natural fibre in the domestic market. A notification issued by the Directorate General of Foreign Trade said that exports against registration certificates already issued will not be allowed.

India has already exported about 85 lakh bales (170 kg each) of cotton in the current marketing year (October-September). It had shipped 66 lakh bales overseas in the 2010-11 marketing year. The Cotton Advisory Board has projected 355 lakh bales of cotton production in the 2011-12 season.

In August, the government had removed restrictions on the export of the natural fibre and permitted shipments under OGL till September 2011.