Spinning mills in Madhya Pradesh have significantly reduced buying raw cotton from the market. They are holding back purchases anticipating a drop in prices of raw cotton with the arrival of fresh and superior crops in the market from November. There are about 40 spinning units in the state. Each unit has a capacity of one lakh spindles that require around 450 to 500 bales of cotton a day.

The moisture content in current supplies is over 30 per cent as against the standard level of 15 per cent. Fresh supplies of cotton have started arriving in the local market but only 10 per cent of the crop has been harvested so far. Cotton arrivals are expected to increase from November. Arrivals of the new season crop have got delayed due to rains in several parts of the region.

Current cotton prices are not viable for spinning mills as yarn prices are ruling low in the market due to poor export and textile demand. Mills are in a wait-and-watch mode as cotton prices may drop with the rise in supply. Spinning units have been using blended cotton since the past few months due to higher cotton prices.