Cotton exports from India are projected to jump by 21 per cent to 8 million bales in the 2011-12 marketing year (August-July) on the back of record output and a possibly less restrictive government policy, according to a recent US Department of Agriculture (USDA) report.

The country had shipped 6.6 million bales of cotton overseas in the 2010-11 marketing year, the USDA said in the report.

The USDA report also noted that India, the world's second-largest cotton producer, may adopt a less restrictive export policy to prevent any steep fall in domestic prices due to an expected increase in output in other countries, especially China.

The USDA explained that India may have fewer export restrictions to ensure domestic cotton prices do not fall below the minimum support price and avoid a situation where its procuring agency, the Cotton Corporation of India (CCI), is required to buy large volumes and run the risk of selling at a loss.