NEW DELHI (Reuters) – The government has imposed tax on cotton exports to ease domestic prices, the Business Standard newspaper reported on Wednesday 14 April citing unnamed Textiles Ministry sources.

An export duty of 2,500 rupees ($56.47) a tonne has been imposed on all varieties of raw cotton with effect from April 9, the paper said.

With the export tax and a strengthening rupee, overseas sales would drop, the report said.

A government official had said earlier this month the country's cotton exports might reach 8 million bales (1 bale=170 kg) in the year to September, more than double from a year ago, due to strong demand from China and Bangladesh.

(Writing by Mayank Bhardwaj; editing by Malini Menon)