Cotton yarn demand slows in south India amid payment woes

In the Tiruppur market, demand for cotton yarn ranged from average to weak, with prices maintaining previous levels. A trader from the Mumbai market told Fibre2Fashion, “Cotton yarn demand has eased in the last couple of days. Slow payment flow has made cotton yarn purchases challenging for potential buyers. Traders and manufacturers are prioritising liquidity, and payment constraints have reduced buyers’ appetite.”

In Tiruppur, knitting cotton yarn prices were noted as 30 count combed cotton yarn at ₹255-263 (approximately $2.94-3.03) per kg (excluding GST), 34 count combed cotton yarn at ₹264-271 (approximately $3.05-3.13) per kg, 40 count combed cotton yarn at ₹276-288 (approximately $3.18-3.32) per kg, 30 count carded cotton yarn at ₹235-240 (approximately $2.71-2.77) per kg, 34 count carded cotton yarn at ₹240-245 (approximately $2.77-2.83) per kg and 40 count carded cotton yarn at ₹248-253 (approximately $2.86-2.92) per kg.

The Mumbai market continued to witness sluggish demand, though cotton yarn prices did not decline further after an earlier drop of ₹3-5 per kg this week. According to market sources, mills are receiving support from the export market as the falling rupee against the US dollar has benefitted spinning mills. They are actively seeking overseas buyers due to favourable foreign exchange rates. However, cotton yarn demand is unlikely to improve in the coming weeks, as payment issues are not expected to be resolved within the next fortnight.

In Mumbai, 60 carded yarn of warp and weft varieties were traded at ₹1,430-1,460 (approximately $16.50-$16.84) and ₹1,320-1,360 per 5 kg (approximately $15.23-$15.69) (excluding GST), respectively. Other prices include 60 combed warp at ₹316-320 (approximately $3.65-$3.69) per kg, 80 carded weft at ₹1,430-1,490 (approximately $16.50-$17.19) per 4.5 kg, 44/46 carded warp at ₹265-270 (approximately $3.06-$3.11) per kg, 40/41 carded warp at ₹253-257 (approximately $2.92-$2.96) per kg and 40/41 combed warp at ₹268-272 (approximately $3.09-3.14) per kg, according to trade sources.

In Gujarat, cotton prices increased further by ₹200 per candy (356 kg). A slowdown in arrivals encouraged ginners to quote higher prices. The Cotton Corporation of India (CCI) has resumed the procurement of seed cotton from farmers at minimum support prices, reducing the availability of supplies for ginners. As a result, ginners will have to offer higher prices to procure seed cotton from farmers. Cotton arrivals are expected to drop below one lakh bales per day, a level that has already been approached.

Cotton arrivals were estimated at 16,000-19,000 bales (170 kg each) in Gujarat and 105,000-110,000 bales across the country. The benchmark Shankar-6 cotton was quoted between ₹53,500-54,000 (approximately $617.17-$620.63) per candy (356 kg), while southern mills were looking to buy cotton at ₹54,500-54,800 (approximately $628.70-$632.16) per candy. Seed cotton (kapas) was traded at around ₹7,550-7,675 (approximately $87.10-$88.54) per quintal.

Disclaimer: The prices in this article are based on market sources and hence, readers are recommended to do their own research before making any decision. The publisher and their affiliates are not liable for any inaccuracies or actions taken based on this information.

ALCHEMPro News Desk (KUL)