Cotton supplies in local spot markets from the new crop in India, the world's second-largest producer of the fibre, have fallen 10 per cent in the current season that began in October, the Cotton Corp of India said. 

Supplies until December 16 fell to 6.2 million bales of 170 kg each, down from 6.9 million bales a year earlier, the state-run procurement agency said in a statement on Tuesday. 

Supplies in spot markets are rising gradually but they are still below expectations as many farmers, who are waiting for better returns, are holding back their produce, traders said.