NEW DELHI: The United States has alleged that restrictions imposed by India on export of cotton has contributed to global price volatility and its appropriateness should be discussed at the World Trade Organization, but India maintains that the restrictions fall outside the purview of the multilateral trade body.

In a recent meeting of the WTO's committee on agriculture, the US said the cap on cotton exports imposed by India since last year had an impact on the global cotton market, contributing to unnecessary price volatility and affecting all cotton producers, and thus would be appropriate for discussion in the committee.

Pakistan and Canada, too, expressed their concerns about the export caps, a person tracking the development told ET. Pakistan sources cotton from India for its textile industry and has been affected by the cap, which sources cotton from India for its textiles industry, and Canada too expressed concerns about the export caps, India, however, is confident that the export restrictions are justified. "Our export restrictions on cotton fall under GATT Article XI and thus are outside the purview of the agriculture committee," an Indian government official told ET.

Jul 2, 2011, 02.59am IST

By Amiti Sen, ET Bureau