Cotton yarn surges in south India amid strong demand, limited supply

In Mumbai, the market witnessed a rise in cotton yarn prices due to stronger demand, enabling mills and traders to quote higher prices by ₹1-3 per kg. A trader from the Mumbai market told Fibre2Fashion, "Mills and stockists are experiencing higher demand from power looms and auto looms as they increase their production, not only for the summer season but also for the current winter season." The demand for summer garments is expected to rise in the coming weeks, leading to higher demand for fine counts of cotton yarn.

In Mumbai, 60 carded yarn of warp and weft varieties were traded at ₹1,430-1,470 (approximately $16.67-$17.14) and ₹1,380-1,430 per 5 kg (approximately $16.09-$16.67) (excluding GST), respectively. Other prices include 60 combed warp at ₹335-342 (approximately $3.91-$3.99) per kg, 80 carded weft at ₹1,410-1,470 (approximately $16.44-$14.25) per 4.5 kg, 44/46 carded warp at ₹260-269 (approximately $3.03-$3.14) per kg, 40/41 carded warp at ₹254-264 (approximately $2.96-$3.08) per kg and 40/41 combed warp at ₹286-291 (approximately $3.33-3.39) per kg, according to trade sources.

The Tiruppur market also noted an increase of ₹1-2 per kg in certain counts and varieties of cotton yarn. The recent rise in cotton prices has encouraged buying from the downstream industry. Market sources suggest that the market is emerging from a negative zone and that cotton yarn demand may increase by the middle of the current month. The CCI is purchasing more than 50 per cent of the cotton arriving in the country, providing support for cotton prices due to limited availability.

In Tiruppur, knitting cotton yarn prices were noted as 30 count combed cotton yarn at ₹255-263 (approximately $2.97-3.07) per kg (excluding GST), 34 count combed cotton yarn at ₹264-271 (approximately $3.08-3.16) per kg, 40 count combed cotton yarn at ₹276-288 (approximately $3.22-3.36) per kg, 30 count carded cotton yarn at ₹235-240 (approximately $2.74-2.80) per kg, 34 count carded cotton yarn at ₹240-245 (approximately $2.80-2.86) per kg and 40 count carded cotton yarn at ₹248-253 (approximately $2.89-2.95) per kg.

In Gujarat, cotton prices increased by ₹700-800 per candy of 356 kg due to unavailability in the open market. Traders stated that the CCI is buying around 50-70 per cent of seed cotton at the minimum support price (MSP) in different states. Market prices are lower than the MSP of seed cotton, causing ginners to be unable to purchase seed cotton, leading many to stop ginning and pressing cotton. This has created limited availability for spinning mills, spurring a rise in cotton prices. The CCI has also managed to clear its cotton stock from last year as spinning mills look to buy cotton at reasonable prices, despite facing price disparities in the yarn export market. Cotton arrivals were estimated at 32,000-35,000 bales of 170 kg in Gujarat and 210,000-225,000 bales across the country.

The benchmark Shankar-6 cotton was quoted between ₹54,000-54,300 (approximately $629.55-$633.04) per candy of 356 kg, while southern mills were aiming to purchase cotton at ₹55,000-55,200 (approximately $641.20-$643.54) per candy. Seed cotton (Kapas) was traded at around ₹7,450-7,550 (approximately $86.85-$88.02) 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)