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Cotton Yarn prices rise in south India amidst stronger fibre prospects

Mills have increased yarn prices by as much as &#****;*-** per kg, although the market could only absorb a portion of the hike. Consumer industries are facing unease due to rising yarn prices as they are not receiving a positive response from the downstream industry. Retail demand for garments and textile products has been less attractive.

A trader from Mumbai told Fibre2Fashion, "Mills have increased yarn prices by as much as &#****;** per kg in anticipation of higher export demand for cotton and yarn. Market prices could rise by up to &#****;* per kg. However, demand from the fabric manufacturing industry has not been promising. Higher cotton prices will further pressure their margins."