The government is in no hurry to ban cotton exports in the year through September despite a recent spike in the registration of deals, as domestic prices are still much lower than the record levels hit in 2011, official sources said on Thursday. This could be the first year since 2009-10 when cotton exports are unlikely to witness curbs.

In fact, a late evening statement by the commerce ministry said: ?The committee (of secretaries) noted that the situation with respect to cotton availability, prices and export is satisfactory and decided that the current dispensation (free trade of cotton) may continue. The committee has decided to keep a watch on the situation and meet as and when the situation warrants.?

A panel of secretaries, comprising the top bureaucrats of the departments of textiles, commerce and agriculture, reviewed cotton supplies following a massive pick-up in export registration of late, as demand from China returned just as fears about a smaller global harvest loomed. The panel met weeks after the state-run Cotton Advisory Board (CAB) had pegged exportable surplus of cotton for the marketing year through September at 8 million bales. One bale equals 170 kg.

?There is no reason to ban cotton exports as of now. Prices are still at resonable levels and way below the elevated levels witnessed in the past two year,? a senior government official told FE, corroborating the commerce ministry?s statement. ?There is a slight pick-up in garment exports of late as orders from Europe have started coming in good deal. So I think textile companies shouldn’t have any problems in the days to come to manage with the current price level of cotton,? said another official.

A ministerial panel had decided in November that the exportable surplus of seven million bales would be adehered to in the registration of shipment contracts during 2012-13. The panel comprised agriculture minister Sharad Pawar, fm P Chidambaram and textiles and commerce minister Anand Sharma.

India’s cotton export registration has reached around 6.5 million bales this year after remaining subdued until December.