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Rising cotton prices squeeze yarn margins in south India

Insights

• South India's cotton yarn market remains sluggish amid rising production costs and weak demand from the garment industry.
• Despite a *–* per cent rise in cotton prices, yarn rates in Tiruppur and Mumbai stayed stable, straining mill margins.
• Traders cite tariff uncertainty linked to Trump's policies as a key dampener.
• In Gujarat, cotton prices rose due to limited stock and CCI's upward auction revisions.