By Thomas Kutty Abraham and Madelene Pearson

July 2 (Bloomberg) -- India, the world’s second-largest cotton grower and exporter, will end curbs on overseas sales in the new crop year amid forecasts for a record harvest, said a government official.

“The next season, we won’t have these restrictions,” A.B. Joshi, the nation’s textiles commissioner, said in an interview in Mumbai yesterday. The limits applied in April are a “very temporary measure.”

India halted export registrations to cool domestic prices and bolster supplies, and then introduced a new licensing system for shipments a month later. Production in the year starting Oct. 1 may reach a record as higher prices spur plantings, Joshi said.

“My expectation is that we will have a very good crop,” he said. “We expect higher cotton output, after meeting the increased domestic demand, there would be a surplus and it will continue to be exported.”

Under the new permit system, about 300,000 bales that were registered have been allowed for export to Bangladesh and Pakistan, the commissioner said. The remaining 500,000 bales would be cleared for shipment in the coming months, he said.

“Registered but unshipped quantities are likely to be allowed but only the registered quantities, not new contracts,” during the current season, he said.

A bale weighs 170 kilograms (375 pounds) in India.