Spinning mills to expect drop in raw cotton prices

Spinning mills have reduced purchasing raw cotton from the market due to inferior produce. The buyers are holding back expecting drop in raw cotton prices with arrival of fresh and ‘superior’ crops in the market from next month.

There are about 40 spinning units in the state. Each unit has a capacity of one lakh spindles that requires around 450-500 bales of cotton per day.
President of a textile firm Suresh Maheshwari said, “Buying of raw cotton has reduced significantly because quality is not suitable for further process. Moisture content is high but we expect it to drop by the first week of November.”

The moisture content in the current supplies is over 30 per cent as against the standard level of 15 per cent. Fresh supply from cotton has 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, industry participants said. Arrivals of the new season crop got delayed due to rains in several parts of the region.

According to spinning mills, current cotton prices are not viable as yarn prices are ruling low in the market on poor export and textile demand. An owner of a spinning mill who did not wish to name said, “We are in a wait-and-watch mode as cotton prices may drop with rise in supply.” Spinning units have been using blended cotton since past few months due to higher cotton prices.