UPDATE 1-U.S. cotton jumps by daily limit for 2nd day

(Updates prices, adds quotes)

SINGAPORE, March 1 (Reuters) - U.S. cotton futures rose by the daily limit for a second straight day on Tuesday as investors continued to bet on the commodity amid strong demand, led by top importer China and limited supply from India.

The key May cotton contract on ICE Futures U.S. rose the 7.00-cent limit to trade at $1.9823 per lb in early Asian trade, while China's Zhengzhou cotton gained almost 5 percent to trade around 33,100 yuan per tonne.

"There will not be more cotton exports from India to the world market beyond what have been permitted," said D. K. Nair, secretary general of the New Delhi-based trade body Confederation of Indian Textile Industries.

India, the world's second-biggest producer, had permitted 5.5 million bales of 170 kg each for exports from Oct. 1, but quotas could not be met as rains have hit the harvest.

Bad weather in many of the world's cotton growing regions including the United States and Asia pushed U.S. cotton prices up nearly 40 percent last month, posting their sixth monthly gain in the past seven months with prices at their highest since the American Civil War. (Reporting by Naveen Thukral and Ratnajyoti Dutta; Editing by Ed Lane)