Cotton yarn faces slow demand in south India, steadiness in prices

Cotton yarn prices remained stable in the Mumbai market, which saw limited buying from the weaving industry. Price disparity is discouraging cotton yarn exports in the global market. A trader from the Mumbai market told Fibre2Fashion, “India’s budget for the next fiscal year, 2025-26, will be presented on February 1. Buyers are cautious as they prefer to wait for market direction from potential policy changes in the textile sector. Limited demand from the downstream industry has also caused slow buying by spinning mills.”

In Mumbai, 60-carded yarn of warp and weft varieties was traded at ₹1,440-1,480 (approximately $16.64-$17.11) and ₹1,390-1,440 per 5 kg (approximately $16.07-$16.64) (excluding GST), respectively. Other prices include 60-combed warp at ₹338-344 (approximately $3.91-$3.98) per kg, 80-carded weft at ₹1,420-1,480 (approximately $16.41-$17.11) per 4.5 kg, 44/46-carded warp at ₹262-272 (approximately $3.03-$3.14) per kg, 40/41-carded warp at ₹256-266 (approximately $2.96-$3.07) per kg, and 40/41-combed warp at ₹288-294 (approximately $3.33-$3.40) per kg, according to trade sources.

The Tiruppur market also experienced weaker sentiments in cotton yarn trade, with prices remaining at previous levels. According to market sources, buyers are taking a cautious approach not only due to the upcoming Union Budget but also because of potential tariff-related policy changes from the Trump administration. Traders stated that a wait and watch policy is considered more prudent in the current situation. The Trump administration is taking bold steps on multiple fronts, which may also impact price dynamics in the textile value chain.

In Tiruppur, knitting cotton yarn prices were noted as follows: 30-count combed cotton yarn at ₹255-263 (approximately $2.95-$3.04) per kg (excluding GST), 34-count combed cotton yarn at ₹264-271 (approximately $3.05-$3.14) per kg, 40-count combed cotton yarn at ₹276-288 (approximately $3.19-$3.33) per kg, 30-count carded cotton yarn at ₹235-240 (approximately $2.72-$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 $2.87-$2.92) per kg.

In Gujarat, cotton prices have been slightly lower since late last week, easing by ₹300-500 per candy of 356 kg. Traders reported that the decline in cotton prices is due to slow demand. The Cotton Corporation of India (CCI) will stop buying seed cotton as it is facing a shortage of warehousing facilities for cotton storage. CCI has procured a significant amount of cotton, estimated to be around 68 lakh bales of 170 kg each. Ginners are cautiously buying seed cotton as cotton seed prices have shown a downward trend, eroding the margins of the ginning process.

Cotton arrivals were estimated at 28,000-30,000 bales of 170 kg in Gujarat and 155,000-160,000 bales across the country. The benchmark Shankar-6 cotton was quoted between ₹53,300-53,800 (approximately $616.03-$621.81) per candy of 356 kg, while southern mills were looking to buy cotton at ₹54,000-54,500 (approximately $624.12-$629.90) per candy. Seed cotton (Kapas) was traded at around ₹7,400-7,550 (approximately $85.53-$87.26) 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)