South Indian cotton yarn prices dip as export demand weakens

In the Mumbai market, prices declined by ₹1-2 per kg across most counts and varieties. Power looms continue to operate cautiously, maintaining limited fabric stocks due to uncertain demand. A Mumbai-based trader told Fibre2Fashion, “Power loom owners are finding it difficult to predict which cotton yarn varieties will see strong demand in the coming weeks. While summer demand is expected to improve soon, stockists and traders are under pressure to liquidate their existing stocks.”

In Mumbai, 60 carded yarn of warp and weft varieties were sold at ₹1,400-1,440 (approximately $16.58-$17.06) and ₹1,360-1,400 per 5 kg (approximately $16.11-$16.58) (excluding GST), respectively, before Diwali. Other prices were 60 combed warp at ₹327-335 (approximately $3.87-$3.97) per kg, 80 carded weft at ₹1,370-1,420 (approximately $16.23-$16.82) per 4.5 kg, 44/46 carded warp at ₹252-262 (approximately $2.98-$3.10) per kg, 40/41 carded warp at ₹248-258 (approximately $2.94-$3.06) per kg and 40/41 combed warp at ₹277-282 (approximately $3.28-3.34) per kg, according to trade sources.

In Tiruppur, cotton yarn prices also declined by ₹2-3 per kg due to limited purchasing activity from fabric manufacturers amid market uncertainty. A trader from Tiruppur highlighted that India’s recent trade data showed notable growth in garment exports during the previous month. However, cotton yarn exports remain slow, and domestic consumption is insufficient to absorb the high production volumes.

In Tiruppur, knitting cotton yarn prices were noted as 30 count combed cotton yarn at ₹261-268 (approximately $3.09-3.17) per kg (excluding GST), 34 count combed cotton yarn at ₹270-277 (approximately $3.20-3.28) per kg, 40 count combed cotton yarn at ₹282-292 (approximately $3.34-3.56) per kg, 30 count carded cotton yarn at ₹237-242 (approximately $2.81-2.87) per kg, 34 count carded cotton yarn at ₹242-247 (approximately $2.87-2.93) per kg and 40 count carded cotton yarn at ₹250-255 (approximately $2.96-3.02) per kg.

In Gujarat, cotton prices fell by ₹500 per candy of 356 kg over the past week due to a decline in seed cotton prices. The Cotton Corporation of India (CCI) has not yet started purchasing seed cotton in the region, as market prices remain above the minimum support price (MSP). According to traders, ginners are facing a price disparity of ₹3,000-3,500 per candy as spinning mills remain cautious about new purchases. Consequently, ginning mills have slowed their procurement of seed cotton, which saw a price drop of ₹100 per quintal during the week. Cotton arrivals were estimated at 35,000-37,000 bales of 170 kg in Gujarat and 155,000 bales nationwide.

The benchmark Shankar-6 cotton was priced between ₹54,500-55,000 (approximately $645.52-$651.44) per candy of 356 kg. Meanwhile, southern mills were aiming to purchase cotton at ₹55,000-55,500 (approximately $651.44-$657.36) per candy. Seed cotton (kapas) traded at approximately ₹7,500-7,700 (approximately $88.83-$91.20) 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)