According to sources, the Department of Fertilisers has already recommended a ban on export of sulphuric and phosphoric acids to the commerce ministry, which is yet to take a decision on the matter.
"The prices of these acids are linked to the prices of petroleum products. Sulphur is a byproduct of crude oil. As crude oil prices soar, the refineries that extract petroleum products charge more on sulphur," an industry expert said.
A curb on export of sulphuric acid is expected to increase the availability of sulphuric acid for the predominantly small-scale single super phosphate (SSP) manufacturing sector.
The demand for imposing export restrictions on cotton has come from Indian textile mills, which have been hit by high prices of cotton which have increased by over 35 per cent during the last one year.
"Out of 23 spinning mills in Kerala, as many as 10 have closed down, rendering about 5000 people jobless," said J. Thulasidharan, deputy chairman, Southern Indian Mills' Association.
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However, the Union Minister For Textiles Shankar Singh Vaghela today in a press conference ruled out a ban on cotton exports as the domestic demand is much lower than the production. India produced 31.5 million bales this year where as the domestic demand stands at 24-24.5 million bales, he said.