MUMBAI, March 29 (Reuters) - India's cotton prices may remain firm this week on good exports and domestic demand, analysts and traders said.

"Southern mill demand is good and if you see international market exports Bangladesh and China demand is very strong...I think prices will be higher or at least the same as last week," an official with the state-run procurer and exporter, Cotton Corp of India said.

Analysts and trade said a sudden drop in global stocks may also support prices in India, a major exporter of the commodity.

World 2009/10 cotton ending stocks will slump almost 20 percent year-on-year because of lower output in top consumer, China and increased consumption in India and Turkey, influential industry analyst Cotlook said. see [ID:nN18239697]

"The demand scenario is very good and India has promised not to ban exports so I nothing can stop prices at this stage," said Viren Seth, a trader in Ahmedabad, a major trading centre.

"There is sufficient stock of cotton in the country to meet the demand of the mills as well as export. No proposal is under consideration for banning cotton export," Panabaaka Lakshmi, the junior textiles minister said early March. See [ID:nSGE6230HP]

India's cotton export in the first five months of 2009/10 cotton year jumped by 253 percent to 4.13 million bales, data on textile ministry's website showed.

The cotton year runs between October and September.

Analyst and traders said falling arrivals are also likely to support prices.

The daily average arrivals have dropped to 120,000 bales from about 135,000 bales a week ago, the Cotton Corp official said.
India's cotton arrivals stood at 25.82 million bales of 170 kg as on March 27, down from 25.27 million bales during the same period last year.

Arrivals have fallen sharply in Maharashtra, but rose in Gujarat this year, data showed.

Arrivals rose about 19 percent to 8.3 million bales in Gujarat, while they were down over 12 percent to 5.45 million bales in Maharashtra. The two states are India's top cotton producers.