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Rising cotton prices squeeze yarn margins in south India

The Tiruppur market is expected to see an increase in cotton yarn prices as mills raise selling rates. Although demand from the downstream industry remains sluggish, the rising cost of cotton is supporting yarn prices. A trader from Tiruppur told Fibre2Fashion, “Cotton prices have increased by *–* per cent in the last two weeks. However, yarn prices have remained stable, resulting in losses for spinning mills. They have reduced discounts to protect their margins. Cotton yarn market prices may increase in the coming weeks.”

In Tiruppur, knitting cotton yarn prices were noted as ** count combed cotton yarn at &#****;***-*** (~$*.**-*.**) per kg (excluding GST), ** count combed cotton yarn at &#****;***-*** (~$*.**-*.**) per kg, ** count combed cotton yarn at &#****;***-*** (~$*.**-*.**) per kg, ** count carded cotton yarn at &#****;***-*** (~$*.**-*.**) per kg, ** count carded cotton yarn at &#****;***-*** (~$*.**-*.**) per kg and ** count carded cotton yarn at &#****;***-*** (~$*.**-*.**) per kg.