Jan 6 (Reuters) - India is likely to produce a record 32.9 million bales of cotton in 2010/11, higher than the earlier estimate of 32.5 million bales, as yields rose in key growing areas, a senior official at Textile Commissioner's office said.

"Though there was some damage due to heavy rains in Andhra Pradesh, yields were higher in Maharashtra, Gujarat and Punjab. We are estimating production of 32.9 million bales," the official said on Thursday after a meeting of Cotton Advisory Board (CAB).

Gujarat and Maharashtra are the top two cotton producing states in the country. The Indian cotton year runs from October to September.

CAB is made up of textile stakeholders including government, cotton growers, industry associations, traders and ginners.

The country has allowed exports of 5.5 million bales and so far exporters have shipped 3.5 million bales, the official, who declined to be named, said.

Higher production estimate may enable government to allow exports above 5.5 million bales. Government officials are set to meet in mid-January to discuss whether to allow exports above the current limit.

Overseas demand for Indian cotton has increased after bad weather hit crops in China and Pakistan, both leading consumers.