[Ribbon.com] According to a report published by the media on July 4, the United States threatened that because of India’s restrictions on cotton exports, the United States may submit the Indian issue to the WTO.

    The report said at a recent WTO Agriculture Committee meeting that the United States had stated that India’s restrictions on cotton exports caused global price volatility, and it should be discussed in the WTO whether India’s approach is appropriate.

    Pakistan and Canada also expressed their concern about India’s export restrictions, the report added.

    The Indian government banned cotton exports in April last year due to a sharp rise in domestic prices. However, in September 2010, 5.5 million bales of cotton were allowed to be exported due to large domestic production estimates.

    At the same time, according to a new report from the United States Department of Agriculture, India’s annual cotton production for 2010/11 (August/July) is expected to be 24.5 million bales. Exports are expected to be 5.1 million bales, which is larger than the previous estimate of 4.8 million bales.

    The US Department of Agriculture said: "The 2011/12 cotton production is expected to reach a record high, and the reduction in domestic cotton consumption may prompt the Indian government to announce that the export policy will be more relaxed in the upcoming marketing year."