NEW DELHI: Despite an outcry from the garment exporters , the government is keen on allowing excess cotton to be exported from the country before the US cotton hits the international market in January and brings prices down.

The inter-ministerial committee on cotton will meet end of the month to look at fresh production figures and will take a call on whether the present export cap of 55 lakh should be lifted.

“We just had a meeting of the inter-ministerial committee and it was decided that we will look at fresh arrival figures at the end of the month before allowing more exports,” a commerce department official told ET.

The government is struggling for a midway solution as passions are running high among both producers and consumers of cotton. Garment producers have decided to go on day long strike on Friday to protest against cotton and cotton yarn exports, but cotton producing states, including Gujarat and Maharashtra, claim that their farmers would suffer severe losses if exports are restricted .

Cotton prices had recently hit a 140-year high in the US and is up nearly double from their levels a year ago because of large demand and low supply due to poor crops in Pakistan and China.

But prices have already declined in the last few session following reports of a bumper crop in India, the world’s second biggest producer.

“Our farmers can get the best price if they sell in November and December,” the official said. But the government wants to be sure that domestic supplies to the textile industry will not get affected before allowing more exports.

“As per our initial estimates, domestic production of cotton will be around 335 lakh bales while consumption will be around 260 lakh bales, creating a surplus of 75 lakh bales,” the official said.

If cotton producers can show that actual production numbers are more, then there would definitely be a case for an increase in cap. The government allowed exports of 55 lakh bales of cotton from the beginning of this month.

With production in most cotton producing states exceeding expectations, total cotton production in the country would be around 357 lakh bales against last year’s 307 lakh bales, according to crop estimates made by the Cotton Association of India .