8216;Cotton trade hit by India,China policies8217;

China imported in a big way to build reserve,while India has stopped further cotton exports,it said.

8220;China accumulated over 3 million tonnes of domestic cotton and at least one million tonnes of foreign cotton in its national reserve during the first eight months of 2011-12,8221; the ICAC said.

The global body has pegged China8217;s cotton imports at 4.2 million tonnes or up by 61 per cent from 2010-11.

8220;While the purchases supported both domestic and international prices so far,sales from the reserve could reduce Chinese imports and depress world cotton prices in the future,8221; the ICAC said.

That apart,the impact of India8217;s export ban on international cotton prices was limited in March. 8220;However,the longer the ban remains in place,the greater its upward impact on world cotton prices could be,8221; the ICAC noted.

India had banned cotton exports on March 5 briefly for a week. Currently,the government is not allowing fresh exports.

According to ICAC,world cotton trade is expected to rise by 9 per cent to 8.4 million tonnes in 2011-12,driven by near record imports from China.

The world cotton production is pegged at 26.96 million tonnes in 2011-12,higher than the global consumption of 23.13 million tonnes.