New Delhi, May 8 (PTI) The Textiles Ministry has lowered the country''s cotton production estimates further to 30.5 million bales for the 2010-11 season as unseasonal rains in December 2010 have affected the crop output, leading to lower arrival in mandis.

At the start of the season (October-September), the Cotton Advisory Board (CAB), which is a government body, had estimated production to touch 32.9 million bales of 170 kg each. Later in April, it lowered the crop forecast to 31.2 million bales.

"We expect output to be about 30.5 million bales as arrivals are low as compared to last season due to unseasonal rains," Textile Secretary Rita Menon told PTI.

Farmers are bringing lesser quantity of cotton into mandis because untimely rains in December 2010 in states like Gujarat, Maharashtra and Andhra Pradesh have brought down crop yields, she said.

Presently, the daily arrival of the natural fibre into mandis has declined by 55 per cent to 26,470 bales, as against 58,823 bales in the same period last year, she added.

According to the Textile Ministry data, the total cotton arrival is about 28.7 million bales so far in the current season.

However, domestic prices have started cooling off in line with global trend due to sluggish demand.

In the domestic markets, they have declined to Rs 50,000 per candy (356 kg each) now from the high of Rs 62,500 per candy (356 kg each) two months ago.

In September last year, the government had capped cotton exports to 5.5 million bales for 2010-11 season to cool down the prices in the domestic market.

India, the world''s second biggest cotton producer, had shipped the export quota of 5.5 lakh bales of cotton till February.

However, the government is yet to take a view on allowing further export of the natural fibre.