The cotton yarn market in south India has been faced with serious concerns over dwindling demand. Some traders reported panic in the market, making it challenging to determine the prevailing rates. The general consensus was that cotton yarn prices fell by an additional Rs. 3-5 per kg in Mumbai. Fabric prices also saw a decline in the markets of Western India. The Tiruppur market in South India, however, managed to maintain a steady trend, albeit amidst slower demand. There is a possibility of further price drops as the absence of buyers continues to impact both markets.
Cotton yarn prices in Mumbai fell by Rs. 3-5 per kg following a decline in the cost of cotton fibre. The weaving industry’s lacklustre demand further exacerbated the market’s concerns. Fabric prices also decreased, reflecting a sluggish sentiment across the entire textile value chain. A trader from the Mumbai market told, “There was a sense of panic in the market as traders were unsure how to cope with the situation. Prices are falling because no one wants to buy cotton in the current scenario.”
In Mumbai, cotton yarn was traded lower by Rs. 3-5 per kg. The 60 count carded cotton yarn of warp and weft varieties was sold at Rs. 1,460-1,490 and Rs. 1,320-1,360 per 5 kg (excluding GST), respectively.
Other prices include 60 combed warp at Rs. 340-345 per kg, 80 carded (weft) cotton yarn at Rs. 1,410-1,450 per 4.5 kg, 44/46 count carded cotton yarn (warp) at Rs. 268-22 per kg, 40/41 count carded cotton yarn (warp) at Rs. 252-262 per kg and 40/41 count combed yarn (warp) at Rs. 275-280 per kg, according to market report.
In the Tiruppur market, cotton yarn prices have remained steady, but there could be a further downward adjustment due to cheaper cotton and the weaving industry’s sluggish demand. The recent decline in cotton prices has provided some relief to spinners, allowing them to minimise their losses and potentially reach their breakeven point. A trader from Tiruppur told, “Traders did not reduce prices over the last couple of days as they sought to maintain their margins. However, cheaper cotton may lead to a decline in yarn prices. Buyers still show reluctance towards new purchases.”
Prices in the Tiruppur market were noted as 30 count combed cotton yarn at Rs. 266-272 per kg (excluding GST), 34 count combed cotton yarn at Rs. 277-283 per kg, 40 count combed cotton yarn at Rs. 287-294 per kg, 30 count carded cotton yarn at Rs. 242-246 per kg, 34 count carded cotton yarn at Rs. 249-254 per kg and 40 count carded cotton yarn at Rs. 253-260 per kg, as per market report.
In Gujarat, cotton prices have seen a sharp drop due to weak sentiments in the global market and low demand from spinning mills. The natural fibre has experienced a decline of Rs. 1,000-1,500 per candy (356 kg) over the last few days. According to trade sources, while prices may continue to ease, a significant drop is not anticipated. Spinning mills might be encouraged to purchase if prices continue to fall. Cotton was trading at Rs. 56,000-56,500 per candy of 356 kg. Cotton arrivals in Gujarat were estimated at 20,000-22,000 bales of 170 kg, while all India arrivals were projected to be around 80,000-90,000 bales of 170 kg.
