India, the world's second largest cotton producer, said today it had banned exports with immediate effect to ensure supplies for domestic mills, leading to speculation that main consumer China would have to look at other sources.

India's decision to ban exports of cotton has come in for criticism China, which has termed it as "irresponsible" and disruptive of the global market. India, the world's second largest cotton producer, said today it had banned exports with immediate effect to ensure supplies for domestic mills, leading to speculation that main consumer China would have to look at other sources. The China Cotton Association has called for a review of the decision.

"As a member of the international trading family, we hope the Indian government will rectify this market-disrupting and mistaken policy in a timely fashion and comply with global trade rules," the statement said. Citing previous Indian attempt in 2010 to ban cotton exports it said, it had caused "heavy losses" to Chinese textile producers besides hurting local Indian producers.

The current cotton year had already seen the export of 9.5 million bales beginning on 1 October, which stood higher than the projected export surplus quota of 8.4 million bales set in January, due to strong demand from China.