Cotton yarn prices hold steady in south India despite mill adjustments

According to traders, cotton yarn in Mumbai and Tiruppur was traded steadily, as higher mill rates were not absorbed due to slow lifting. The central government has not yet deferred the implementation of Section 43B(h) of the Income Tax Act 2013 to relax trade and industry. Buyers were concerned about the implications of the new payment provision.

A trader from Mumbai told Fibre2Fashion, “Mills were quoting higher prices, but buyers were not ready to lift cotton yarn. Mills were not interested in selling their production at lower prices as demanded by buyers. Mills were unable to pass on the rising cotton prices to yarn prices. Weavers were cautious about fresh buying in the absence of any relief from the payment rule.”

In Mumbai, 60 carded yarn of warp and weft varieties were sold at ₹1,425-1,450 and ₹1,310-1,380 per 5 kg (excluding GST), respectively. Other prices include 60 combed warp at ₹318-325 per kg, 80 carded weft at ₹1,400-1,440 per 4.5 kg, 44/46 carded warp at ₹254-263 per kg, 40/41 carded warp at ₹242-248 per kg, 40/41 combed warp at ₹264-268, and 30/32 carded warp at ₹232-237 per kg, according to Fibre2Fashion's market insight tool TexPro.

The Tiruppur market also noticed a steady trend despite the reduction in discounts by mills. A trader from the Tiruppur market told F2F, “Mills have decreased discounts by ₹4-5 per kg. But stockists and fabric manufacturers were not ready to pay higher net prices. The market rate did not see any gain in cotton yarn. Possible easing of provisions of the payment rule may support cotton yarn.”

In the Tiruppur market, cotton yarn prices were noted as 30 count combed cotton yarn at ₹258-262 per kg (excluding GST), 34 count combed cotton yarn at ₹265-270 per kg, 40 count combed cotton yarn at ₹280-284 per kg, 30 count carded cotton yarn at ₹233-236 per kg, 34 count carded cotton yarn at ₹238-243 per kg, and 40 count carded cotton yarn at ₹247-251 per kg, as per TexPro.

MNCs were aggressively buying cotton at higher prices due to rising ICE cotton. However, spinning mills were cautious about fresh buying because of the new payment rule. The market was already facing liquidity problems, which may deepen in the weeks to come if the government does not provide any relief. Cotton prices increased by ₹400-500 per candy of 356 kg in the last couple of days. Cotton arrival has slightly reduced in Gujarat and throughout the country.

According to trade sources, MNCs and stockists were actively buying the natural fibre. The benchmark Shankar-6 cotton was quoted between ₹56,200-56,500 per candy of 356 kg. Southern mills intended to buy cotton at ₹57,000-57,300 per candy. The arrival was 32,000-35,000 bales of 170 kg in Gujarat. All India arrival was estimated at 150,000-152,000 bales.

ALCHEMPro News Desk (KUL)