India has asked exporters to apply for cotton registration certificates for unshipped quantities out of 5.5 million bales allowed in the 2010/11 season that began on October 1, a government statement on Wednesday said.

Exporters must apply between December 31 and January 6, the statement said, and then eligible exporters will have to ship the quantity within 30 days after getting permission.

India, which is also the world's second-biggest exporter of cotton, had initially permitted exports of 5.5 million bales in the 2010/11 cotton year that began on October 1, between November 1 to December 15.

But exporters only shipped out about 3 million bales by the deadline as unseasonal rains in October and November delayed arrivals of bales at domestic markets.

Now in this second round, exporters have to apply from December 31 to January 6 to the Director General of Foreign Trade for the certificate, the statement said, without specifying any quantity.

Overseas demand for Indian cotton has increased after bad weather hit crops in China and Pakistan, both leading consumers.

The south Asian country is likely to produce more than 32.5 million bales of cotton in 2010/11, topping last year's 29.5 million bales, industry and government officials have said.

Source: Reuters