Cotton yarn demand varies in south India, improves in Tiruppur

The Tiruppur market is experiencing higher demand from buyers yet cotton yarn prices have not seen significant movement. A trader from the Mumbai market told Fibre2Fashion, "Cotton yarn demand is quite good. Garmenting activities are encouraging. Both export and domestic demand are improving. Although the payment condition is still tight, it is expected to improve in the coming months." Humidity and hot weather are the main reasons for the good demand for cotton garments in southern Indian states.

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 $3.04-3.12) 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 $2.71-2.76) per kg, 34 count carded cotton yarn at ₹240-245 (approximately $2.76-2.82) per kg and 40 count carded cotton yarn at ₹248-253 (approximately $2.86-2.91) per kg.

The Mumbai market continued to see limited buying as the flow of payments remains very slow, impacting the buying capacity of power and auto looms. Consequently, cotton yarn prices further eased by ₹3-5 per kg. Market sources indicated that there should be higher seasonal demand currently, but the payment issue poses a significant challenge for the entire value chain.

In Mumbai, 60 carded yarn of warp and weft varieties were traded at ₹1,430-1,460 (approximately $16.47-$16.93) and ₹1,320-1,360 per 5 kg (approximately $15.20-$15.66) (excluding GST), respectively. Other prices include 60 combed warp at ₹316-320 (approximately $3.74-$3.80) per kg, 80 carded weft at ₹1,430-1,490 (approximately $16.59-$17.28) per 4.5 kg, 44/46 carded warp at ₹265-270 (approximately $3.02-$3.13) per kg, 40/41 carded warp at ₹253-257 (approximately $3.12-$3.16) per kg and 40/41 combed warp at ₹268-272 (approximately $3.20-3.27) per kg, according to trade sources.

In Gujarat, cotton prices rose by ₹500-600 per candy of 356 kg due to lower arrivals from farmers and ginner's reluctance to sell, driving up cotton prices in the state. The higher prices of ICE cotton and domestic futures also improved sentiments in the trade. Traders stated that spinning mills are still slow in buying but prices gained due to reduced interest in selling the crop. Cotton arrivals have decreased as the peak season is ending in Gujarat and other producing states. Ginners are also not interested in selling cotton at current prices, expecting higher prices in the coming months.

Cotton arrival was estimated at 18,000-22,000 bales of 170 kg in Gujarat and 110,000-115,000 bales across the country. The benchmark Shankar-6 cotton was quoted between ₹53,300-53,800 (approximately $608.16-$613.92) per candy of 356 kg, while southern mills were looking to buy cotton at ₹54,300-54,600 (approximately $618.53-$621.98) per candy. Seed cotton (Kapas) was traded at around ₹7,550-7,675 (approximately $86.39-$87.83) 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)