* India's cotton export curb to tighten global supply
* Exports had been likely to more than double in 2009/10
* Indian textile makers welcome cotton exports halt (Adds analyst quote, background)
By Sourav Mishra & Rajendra Jadhav
MUMBAI, April 20 (Reuters) - India has stopped cotton exports to control soaring local prices, tightening global supplies and raising prospects of a further rise in New York futures that rose to a two-year high last month.
The Indian government stopped registering new contracts for exports from April 19 after a panel of ministers discussed steps to arrest the sharp rise in local cotton prices, an official statement said.
"Global prices will rise further significantly....India with enough output and stocks was meeting a global supply shortage so far....now the supply is suddenly stopped," said Vandana Bharti, head of research at SMC Comtrade.
"Let's see if U.S. can benefit from the opportunity."
This month, the chairman of the government's Cotton Advisory Board said India's cotton exports in the year to September 2010 were likely to more than double to 8 million bales on strong demand from China and Bangladesh. [ID:nSGE6370KC]
Out of 8.5 million bales of cotton already registered with the authorities for exports, 6.01 million bales had already been shipped out, a senior official in the textile ministry told Reuters on Tuesday, adding data was available until April 15.
Analysts said India's move would tighten global supplies.
"Though India has a surplus for exports, globally cotton supply situation is very tight. Any restriction from India will tighten global supplies and in long term harden prices," said Harish Galipelli, head of research at JRG Wealth Management.
Domestic cotton prices are up to 54 percent higher than the previous year, hurting margins of Indian textile makers and forcing them to raise prices by up to 50 percent. [ID:nSGE63C02K]
Indian textile firms hailed the government's move.
"We welcome the decision...but this move a few months ago could have had a better impact on price control," said DK Nair, secretary general at Confederation of Indian Textile Industry.
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 among others, according to influential industry analyst Cotlook. See [ID:nN18239697].
The spot New York May contract CTK0 was up 1.99 percent at 81.44 cents per lb at 1135 GMT.
The price of cotton on ICE Futures U.S. hit 84.60 cents per lb on March 1, its highest level since March 2008, when prices topped out at 91.38 cents, according to Thomson Reuters data.
