India unexpectedly banned exports on Monday to ensure adequate supplies for the domestic textile industry in the face of strong demand from its biggest customer China. But Farm Minister Sharad Pawar demanded the ban be lifted, saying it hurt cotton farmers, while China's cotton industry association said the ban was "irresponsible" and would disrupt the global market. Easing the ban to exclude shipments already cleared by customs is unlikely to ease prices, traders said, as the amount is quite small. "Farmers, traders and exporters are holding a large amount of stocks. So there is a need to allow more exports. What the government has done will trim the inventory by a very small amount. It is not a significant price booster," said Pradeep Jain, a trader based in Jalgaon, in western Maharashtra state. International cotton prices were largely unchanged after the announcement although domestic prices gained slightly. GOVERNMENT TO MEET ON BAN The key March cotton contract on India's Multicommodity Exchange was trading up 1.07 percent at 17,010 rupees per bale of 170 kg. The benchmark New York cotton future on ICE was trading up 0.19 percent at 89.73 cents per lb. Cotton ended 2011 as the worst-performing commodity of the year, falling 37 percent from 2010 as record prices boosted output and decimated demand, while a shaky global economy scared off investors. Indian exporters had already shipped a record 9.5 million bales in the year from Oct. 1, 2011 before the ban, well above government forecasts. Around 500,000 bales are at ports, traders say, while the government has issued registration certificates for another 2 million bales. "Only a few containers were ready to be loaded at ports," Vijay Shrishrimal, managing director of Mumbai-based top exporter K.N. Resources Pvt Ltd, told Reuters. The commerce ministry statement was issued ahead of government talks on Friday to discuss the ban. Government sources have said India may decide to allow limited exports of cotton to cover existing sales commitments at the meeting. The exporters' association welcomed the decision. "This is a welcome step from the government and this will allow export consignments which have been cleared by the customs authorities," said Dhiren N. Sheth, president of the Cotton Association of India, which groups cotton exporters and traders. If India's ban persists, major cotton exporter Australia is poised to benefit the most, analysts said. Globally, cotton production is expected to exceed consumption this year and again in 2012/13 despite low prices, according to the International Cotton Advisory Committee.