India's cotton exports rose by five per cent to 7.8 million bales till February of this year and the pace of shipments are expected to taper in coming months depending upon demand from China, a latest report said.

The world's second biggest cotton producer had exported 7.4 million bales during the August-February period of the 2012-13 marketing year (August-July). One bale has 170 kg.

"Exports have reached an estimated 7.8 million bales through the end of February," the US Department of Agriculture (USDA) said in its latest report.

Exports from December to February - traditional months of heavy shipments - were primarily to China, Bangladesh, Vietnam, and Pakistan, it said.

However, the pace of exports is expected to taper in coming months depending on demand from China, it added.

According to the USDA, total cotton exports are expected to touch 10.2 million bales in the ongoing 2013-14 marketing year as Indian cotton is favourably priced relative to the Cotlook A index, that monitors global cotton trade.

Cotton exports are expected to be marginally higher in 2013-14 as against 9.9 million bales in the pevious year.

On market arrival of cotton, the report said it continue to lag last year's pace and have reached 21.8 million bales as reported by state-run Cotton Corporation of India.

Arrivals are particularly slow in Punjab, Haryana, and Rajasthan where the pace of cotton deliveries to local markets is 30 per cent behind a year ago. Arrivals in Andhra Pradesh are also running significantly behind the year ago pace.

Quoting trade sources, the USDA said that farmers are willing to hold cotton on farm in the hope of better pricing as the year progresses.

Similarly, mills are maintaining smaller stocks of cotton, buying smaller volumes more frequently rather than fewer, larger purchases, in part because of the high rates of interest in India, it said.Cotton prices remain firm, but spinning margins are strong pointing to continued strong consumption, it added