Untimely rain has disrupted supply of cotton in spot markets of Madhya Pradesh in the peak demand season though tepid buying by textile mills in anticipation of lower prices has kept cotton prices almost stagnant.
The ginning units of Madhya Pradesh that are usually fully occupied during the peak arrival season starting October have restricted capacity utilisation on lower offtake by mills.
The new season supply of cotton starts from October and daily arrivals in the state at present is estimated at around 12,000-13,000 bales as against around 18,000 bales a fortnight ago.
Madhya Pradesh Cotton Ginners and Traders Association founder president Manjeet Singh Chawla said, “Textile mills are in a wait and watch mode. This is the peak supply and demand season but mills have not started placing bulk orders as they are looking for a price drop.”
Kailash Agrawal, owner of ginning units in Khargone said, “This time everyone has adopted a cautious move amid temporary fall in supply and demand from mills”.
