The Ludhiana market saw a surprising gain of ₹3 per kg in cotton yarn prices after the MSP hike by the government. Although demand was not encouraging from the garment and fabric industry, traders and stockists raised cotton yarn prices. A trader from the Ludhiana market told Fibre2Fashion, "Higher MSP will push up raw material prices in the entire value chain of cotton yarn. Spinning mills may increase prices of cotton yarn. Stockists and traders have hiked prices immediately. However, buyers were keen to purchase at the previous prices.”
In Ludhiana, 30-count cotton combed yarn was sold at ₹265-275 (approximately $3.18-3.39) per kg (inclusive of GST); 20 and 25-count combed yarn were traded at ₹255-265 (approximately $3.06-3.18) per kg and ₹260-270 (approximately $3.12-3.24) per kg, respectively; and carded yarn of 30-count was noted at ₹245-250 (approximately $2.94-3.00) per kg today, according to trade sources.
However, cotton yarn prices did not rise in the Delhi market. Stockists and traders will increase prices after a hike by spinning mills. Slow demand also discouraged traders from raising cotton yarn prices. Trade sources said that cotton yarn prices will rise when demand picks up from the consumer industry. The market will adjust to the MSP hike as and when it finds suitable dynamics.
In this market, 30-count combed knitting yarn was traded at ₹263-265 (approximately $3.15-3.17) per kg (GST extra), 40-count combed at ₹283-290 (approximately $3.39-3.47) per kg, 30-count carded at ₹238-240 (approximately $2.85-2.87) per kg, and 40-count carded at ₹263-266 (approximately $3.15-3.18) per kg today.
India’s home textile hub Panipat witnessed stability in recycled yarn prices. Raw materials like cotton comber and recycled polyester fibre were also sold at previous prices. Trade sources said that the home textile segment is also following the bearish tone of the garment industry. The coming festival season may create demand from the domestic as well as global markets. Economic worries are delaying new orders from buyers.
In Panipat, 10s recycled PC yarn (Grey) was traded at ₹78-82 (approximately $0.94-0.98) per kg (GST paid). Other varieties and counts were noted at 10s recycled PC yarn (Black) at ₹53-56 (approximately $0.64-0.67) per kg, 20s recycled PC yarn (Grey) at ₹90-95 (approximately 1.08-1.14) per kg and 30s recycled PC yarn (Grey) at ₹128-132 (approximately $1.54-1.58) per kg. Cotton comber prices were noted at ₹110-112 (approximately $1.32-1.34) per kg and recycled polyester fibre (PET bottle fibre) at ₹76-79 (approximately $0.91-0.95) per kg today.
In north India, cotton prices steadied despite more than a 7 per cent rise in the minimum support price for the next season. The natural fibre was traded at the previous levels in various markets in north India. Traders said there was ample stock of cotton in the country. The market did not react immediately to the MSP hike due to the bearish tone in ICE cotton. However, the higher MSP will not let cotton prices decrease in the domestic market. The average price of cotton is expected to rise around ₹400-500 per maund.
Today's arrivals were 600 bales of 170 kg in north India. State-wise arrivals were as follows: 500 bales in Haryana, 50 bales in upper Rajasthan, and 50 bales in lower Rajasthan. Cotton prices in Punjab ranged from ₹5,680 to ₹5,700 (approximately $68.06-68.30) per maund of 37.2 kg, while in Haryana, prices ranged from ₹5,600 to ₹5,700 (approximately $67.10-68.30). In upper Rajasthan, cotton was priced between ₹5,400- ₹5,700 (approximately $64.71-68.30) per maund. Bikaner line cotton sold for ₹5,700 to ₹5,800 (approximately $68.30-69.50) per maund. In lower Rajasthan, cotton was priced at ₹53,300 to ₹56,300 (approximately $638.66-674.61) per candy of 356 kg.
ALCHEMPro News Desk (KUL)
Receive daily prices and market insights straight to your inbox. Subscribe to AlchemPro Weekly!
marketing@alchempro.com
