| 

Cotton yarn prices hold steady in south India despite mill adjustments

According to traders, cotton yarn in Mumbai and Tiruppur was traded steadily, as higher mill rates were not absorbed due to slow lifting. The central government has not yet deferred the implementation of Section **B(h) of the Income Tax Act **** to relax trade and industry. Buyers were concerned about the implications of the new payment provision.

A trader from Mumbai told Fibre2Fashion, “Mills were quoting higher prices, but buyers were not ready to lift cotton yarn. Mills were not interested in selling their production at lower prices as demanded by buyers. Mills were unable to pass on the rising cotton prices to yarn prices. Weavers were cautious about fresh buying in the absence of any relief from the payment rule.”