The Indian government says it will only consider traders with export experience to be eligible for the remaining quantities of cotton yarn that can be shipped before the end of March under current restrictions.

The move comes after more than 2500 applications were received earlier this month for unshipped quantities out of the 720m kg allowed in the 2010/11 season.

"When a very small residual amount is to be allocated amongst such a large number of applicants, the actual quantity that comes to the share of many applicants becomes commercially unviable," a notice from the Directorate General of Foreign Trade said.

"Therefore, an administrative decision has been taken to consider only such applicants who have recent experience on such export. Hence, only those applicants with export performance in 2009-10 will be considered for allocation in this round."

Traders have until Monday (14 February) to put in a request, including proof of their past exports.

The government in December imposed a ceiling on cotton yarn exports until the end of the current financial year to meet growing domestic demand and an attempt to halt soaring price hikes.