"This is just the beginning of the season and we have unsold stocks of around one million bales (one bale equals 170 kg)," trader Manoj Gala said here, the main city of largest cotton producing state of Gujarat.

He said the market had a carry-forward stock of about 600,000 tonnes from the last season.

The western Indian state contributes 25 to 30 per cent ofthe country's annual cotton output of about 15 million bales.

Dealers said around 2.2 million bales of cotton had arrivedin the marketing yards.

Mills have made import commitments for 400,000 bales and the country's total imports in 1999/2000 (October-September) are expected to go up to 1.3 to 1.4 million bales from around one million last year, dealers said.

Most of the imports last year were shipped from Australia, Africa, Egypt and the Commonwealth of Independent States.

Traders had expected Indian cotton imports to be lower this year as local prices were matching international prices and the quality of the crop was better than last year.

Domestic prices which have fallen over the last month are expected to decline further, dealers said. However, the drop in prices has not kept pace with the downtrend in international markets, they said.

The top quality long staple cotton is selling for Rs 18,200($419.35) a candy (356 kg) down from Rs 20,500 a month ago. "Imported cotton is still cheaper at around Rs 17,500 a candy FOB Indian ports," trader Hira Lal Makwana said.