Farmers' blockades slow north India cotton yarn trade

Punjab, Haryana, and Delhi are feeling the impact of the farmers' unrest. Recycled yarn and cotton comber prices have remained stable. The demand for comber has also decreased due to concerns about demand and production in the downstream value chain. Despite expectations of stronger cotton pushing up comber prices, this has not materialised. The arrival of cotton has not been significantly affected by the farmers' unrest, although there has been a slight decrease due to seasonal factors. Cotton prices have increased by ₹50 per maund of 37.2 kg.

A trader from the Ludhiana market told Fibre2Fashion, "Cotton yarn prices have not seen any significant movement due to slow demand. The demand for cotton yarn has slowed down as the farmers' protest may disrupt the movement of goods, with roads closed in Punjab, Haryana, Rajasthan, Uttar Pradesh, and Delhi." The production cost of cotton yarn has increased by ₹4-5 per kg in the last two weeks due to the higher cost of natural fibre. However, yarn prices have only risen by ₹2 per kg due to sluggish demand.

In Ludhiana, 30 count cotton combed yarn was sold at ₹258-268 per kg (inclusive of GST); 20 and 25 count combed yarn were traded at ₹248-258 per kg and ₹254-264 per kg, respectively; and carded yarn of 30 count was noted at ₹238-245 per kg today, according to Fibre2Fashion's market insight tool TexPro.

A trader based in Delhi told F2F, "Cotton yarn prices have stabilised in the local market due to slow demand. Mills will need to slow down their production as they may face difficulties in transporting goods due to the farmers' protest. The local administration has closed all border roads to prevent farmers from entering the national capital. The transportation of raw materials and finished goods has been severely affected by the unrest."

In the Delhi market, 30 count combed yarn was traded at ₹258-263 per kg (excluding GST), 40 count combed at ₹283-288 per kg, 30 count carded at ₹241-246 per kg, and 40 count carded at ₹266-271 per kg today, as per TexPro.

Prices of recycled yarn, cotton comber, and recycled polyester fibre have remained stable in the Panipat market. A trader from Panipat told F2F, "Cotton comber prices should increase as cotton prices have risen. However, slow production has dampened the demand for cotton comber, which has not supported price increases."

In Panipat, 10s recycled PC yarn (Grey) was traded at ₹76-80 per kg (inclusive of GST). Other varieties and counts were noted at 10s recycled PC yarn (Black) at ₹51-54 per kg, 20s recycled PC yarn (Grey) at ₹88-93 per kg, and 30s recycled PC yarn (Grey) at ₹133-142 per kg. Cotton comber prices were noted at ₹112-114 per kg. Recycled polyester fibre (PET bottle fibre) was noted at ₹73-76 per kg today. 

Cotton prices in north India have further increased following stronger ICE cotton. Traders have stated that spinning mills and MNCs are purchasing cotton regularly. Mills are attempting to build up sufficient stock for the upcoming dry months, while MNCs need to fulfil their selling commitments before the current arrival season ends. Cotton yarn prices have increased by ₹40-50 per maund of 37.2 kg. Today's arrival decreased from 15,000 bales to 14,000 bales of 170 kg due to seasonal effects. State-wise arrivals were noted as follows: Punjab 1,000 bales, Haryana 4,000 bales, upper Rajasthan 5,000 bales, and lower Rajasthan 4,000 bales. Cotton was priced in Punjab at ₹5,600-5,650 and in Haryana at ₹5,550-5,650, upper Rajasthan at ₹5,350-5,650 per maund of 37.2 kg. Bikaner line cotton was sold at ₹5,600-5,700 per maund. In lower Rajasthan, cotton was priced at ₹53,200-55,200 per candy of 356 kg.

ALCHEMPro News Desk (KUL)