NEW DELHI: The Government will allow unrestricted export of 55 lakh bales of cotton from October 1 but dispatches beyond the ceiling would attract an export duty of Rs 2,500 per tonne, an official has said.

Cotton production this season, starting next month, is projected at a record 330 lakh bales, the official told PTI.

In the cotton year 2009-2010 (October-September), the production stood at 292 lakh bales. One bale is equal to 170 kg.

The decision to allow unrestricted export of 55 lakh bales was taken at a meeting of the Commerce Secretary, Mr Rahul Khullar, the Agriculture Secretary, Mr P.K. Basu, and the Textiles Secretary, Mr Rita Menon, here on September 1, he said.

However, exporters will have to register their overseas contracts with the Textiles Commissioner. The registration process is scheduled to start from September 15, he said.

With domestic consumption estimates of 220 lakh bales, the country may have a closing stock of 50-55 lakh bales at the end of the season.