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South Indian cotton yarn faces headwind, but prices remain stable

Power looms and auto looms are now facing a labour shortage as workers return to their native places during summer. Traders said cotton prices are bullish due to limited availability, but yarn demand remains sluggish. If cotton yarn demand improves in the coming weeks, prices may rise sharply.

In the Mumbai market, demand for cotton yarn weakened due to labour shortages, which have curtailed fabric production in power and auto looms. This has also led to reduced cotton yarn consumption in the downstream industry. A trader from the Mumbai market told Fibre2Fashion, “Fabric demand from the garment industry is being met through existing stocks. Power and auto looms have reduced fabric production, which has impacted cotton yarn demand. Sellers are offering discounts on current prices to attract potential buyers.”