NEW DELHI: As counter to a campaign by Indian industry to ban cotton exports, global groups are exerting pressure on their respective governments to act against India, for restricting the shipments of natural fibre.

Global groups like the US-based National Council of Textile Organisations (NCTO), Europe-based Eurocoton and ITKIB and Mexico-based Canaintex have come together against India's restriction on cotton exports and written joint letters to their respective governments.

They have sought combined action against India charging it with violation of World Trade Organization (WTO) rules.

India has restricted this year's export of cotton to 55 lakh bales (170 kg each) in the wake of increase in the prices of natural fibre following the reports of crop failure in the US, which is the largest cotton producer .

But the domestic industry is not satisfied and wants a total ban on exports.

On the other hand global textile groups are blaming rise in international cotton prices by nearly 100 per cent (from 62 cent per lb to USD 1.20 per lb).

"The Indian action has come as world supply of cotton has tightened amid increasing demand..." the joint letter said.

Eurocoton president Haciot Benot describe Indian restrictions as anti-trade, which has caused turmoil in the world market.

"The Indian government has clearly broken WTO rules and must be held to account...India is illegally subsidizing its domestic industry through its export bans and restrictions," CANAINTEX President David Gracia said.

The groups noted in the letter that their mills, "face the prospect of extremely high prices for cotton or having no supply of cotton at all."

As the second largest exporter of cotton, India is enjoying one its best cotton crops in history but has dramatically restricted its export, the letter said.

As per the Indian government estimates, the cotton production in 2010-11 is likely to be record 335 lakh bales.
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