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APECNew Delhi - The Indian government has rejected knitwear industry calls to reduce cotton exports to try to stabilise yarn and fabric prices, insisting there are sufficient cotton stocks in the country.

Although total domestic consumption in the 2008-09 cotton season was 26.4 million bales, with a total of 29 million bales produced, local knitwear and fabric manufacturers argue that much of the good quality cotton gets exported to China, Indonesia, Thailand and Bangladesh while the domestic industry has to use the leftovers or buy costly imports.

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