The Textile Commissioner's office will start online registration of cotton exports contracts from September 15.

"The online system will be in operation with effect from September 15. On the commencement of the online system, the system of submitting the application in physical (through courier, post and hand delivery) will stand discontinued," the Textiles Commissioner said in a statement.

The exporters have to register their contracts prior to the actual shipments.

The introduction of the online system will help exporters know the status of their registration applications, and allow the government to keep a ready tab on the dispatches leaving the country.

Online registration is likely to help the exporters as the government has allowed them to ship up to 55 lakh bales (of 170 kg each) from October 1. Cotton marketing season begins from October.

The decision to shift to online system for registration and remove the restrictions was taken at a meeting of Commerce Secretary Khullar, Agriculture Secretary P K Basu and Textiles Secretary Rita Menon on first September.

However, the ceiling of up to 55 lakh bales may be increased or decreased after a review of the cotton production estimates, its prices and domestic demand on November 15.

As per conservative estimates, the cotton production in 2010-11 is likely to be 325 lakh bales (of 170 kg each).

However, the Ministry of Agriculture expects the yield to touch 335 lakh bales.

Increased exports and rising prices had led the government during April-May this year to suspend the registration of new export contracts. It also restricted shipments under the licence regime.