In two separate statements, the Southern India Mills Association (Sima) and Indian Chamber of Commerce and Industry (ICCI) said that the move would lead to flaring up of all round cotton prices, affecting the textile industry, which was passing through a difficult phase.

Regretting that the centre had embarked on such a move despite industry's plea not to allow cotton exports, Sima chairman, BK Krishnaraj Vanavarayar said the industry's hopes for a revival had been dashed following the recent announcement.

Describing the move as an `economic blunder', ICCI president D Dorairaj said the centre did not heed the requests of the industry to decide on export quotas only after proper assessment of the crop. The decision, he said, would prove counter-productive, when a higher crop level and lower prices wereexpected by the textile industry.

Vanavarayar appealed to the textile ministry to help the predominantly cotton-based textile industry in the south by deferring the decision to allow cotton exports.