India, the world's second-largest producer of cotton, announced Monday a ban on exports of the commodity in order to protect domestic supplies.
On the news, cotton futures rallied to their limit 4.5 percent to $0.9223 cents per pound.
The last time India banned cotton exports was back in April 21, 2010, and the ban lasted until Oct. 31.
Most of India's cotton is shipped to China, which imports more than 70 percent of the commodity.
On Tuesday, India's agriculture ministry, Sharad Pawar, called for the ban on cotton exports to be overturned as the decision will hurt farmers in India.
As the measure is debated, could some of the companies with exposure to the cotton industry be poised to benefit? Here is a look at their performance during India’s last ban.
The majority of these firms posted double-digit gains, while the Standard & Poor's 500 was up about 2 percent during the same period.
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