The government has imposed Rs 2,500 per tonne duty on cotton export and 3 per cent levy on overseas shipments of cotton waste to check rising prices of the commodity in the domestic market.
"We have imposed export duty of 2,500 per tonne on cotton and 3 per cent levy on cotton waste," a source in the Central Board of Excise and Customs told PTI.
The measure follows the decision by a high-level meeting chaired by Finance Minister Pranab Mukherjee last week.
The export duty has been levied for six months, an official in the Textiles Ministry said.
The domestic textile industry has been pitching for cotton export restrictions in the wake of steep rise in the natural fibre.
The price of Shankar-6 variety, the premium quality of cotton, has risen to around Rs 28,500 per candy from around Rs 25,000 per candy (356 kg) in November, 2009.
India, the world's second biggest cotton producer, exported 2.36 million bales (of 170 kg each) cotton last season.