"Cotton imports may not be more than 1.5 lakh bales (of 170 kg each) this season in view of production being estimated at 165-170 lakh bales," Indian Cotton Mills Federation (ICMF) secretary general MP Gajaria said.

The estimated fall in import is against five lakh bales imported last season following a decline in cotton production.

Cotton imports during 1997-98 was the highest since 1994-95, when 5.89 lakh bales was imported.

During 1996-97 30,000 bales were imported and in 1995-96 50,000 bales were imported.

Cotton imports are allowed under open general license, which allows unrestricted quantity of imports by a person possessing import license.

The projected fall in imports is in tune with various estimates predicting a comfortable position as far as cotton availability is concerned.

While industry haspegged estimates for current season around 170 lakh bales, textile minister Kashiram Rana told a textile industry meeting last week that cotton production was expected to be a record 180 lakh bales.

The Cotton Advisory Board (CAB), a body comprising representatives of industry and growers besides government officials, is likely to make its initial estimates on current season cotton production next month in Mumbai.

On the other hand, cotton exports slid sharply last season to two lakh bales from 16.82 lakh bales in 1996-97. However, during 1996-97 export quota from 1995-96 was carried over as there was a delay in announcement of the allocation.

Last season's export performance was against the government allocating seven lakh bales for export. This year, textile ministry has already announced an export quota of five lakh bales.

This has led to protests from the industry but Rana has ruled out review of the decision saying decision to export has been taken after keeping in mind all factors, includingdemand, supply and price.

During 1996-97, cotton exports had fetched Rs 1655 crore.

Last season's fall in exports was also in view of low prices for cotton in the global market, where the rates for the commodity slipped to a four-year low.

In contrast, domestic cotton prices were higher encouraging more imports.