South Indian cotton yarn weakens due to tight payment, cautious buying

In the Mumbai market, cotton yarn prices have remained stable except for a few counts and varieties. The market has noted a scarcity of payments and poor demand from the garment industry. A Mumbai market trader told Fibre2Fashion, "Several factors are affecting sentiment in the cotton yarn market. Tight payment conditions have diminished the buying capacity of the consumer industry. Buyers are also cautious ahead of the country’s budget for the next fiscal 2025-26. Power looms and auto looms have scaled back production, anticipating weak demand from the garment industry."

In Mumbai, 60 carded yarn of warp and weft varieties were traded at ₹1,440-1,480 (approximately $16.62-$17.09) and ₹1,370-1,420 per 5 kg (approximately $15.82-$16.39) (excluding GST), respectively. Other prices include 60 combed warp at ₹333-340 (approximately $3.84-$3.92) per kg, 80 carded weft at ₹1,440-1,500 (approximately $16.62-$17.32) per 4.5 kg, 44/46 carded warp at ₹262-272 (approximately $3.02-$3.14) per kg, 40/41 carded warp at ₹256-266 (approximately $2.96-$3.07) per kg and 40/41 combed warp at ₹278-284 (approximately $3.21-3.28) per kg, according to trade sources.

The Tiruppur market also witnessed weaker sentiments in the cotton yarn trade, with no significant movement in prices. Market sources noted below-average demand as businesses are more focused on clearing payments due to their SME suppliers, which must be settled by the end of March. Although summer garmenting has begun, uncertainty regarding retail demand has led to lower purchases of cotton yarn and fabric.

In Tiruppur, knitting cotton yarn prices were noted as 30 count combed cotton yarn at ₹255-263 (approximately $2.94-3.04) per kg (excluding GST), 34 count combed cotton yarn at ₹264-271 (approximately $3.05-3.13) per kg, 40 count combed cotton yarn at ₹276-288 (approximately $3.19-3.32) per kg, 30 count carded cotton yarn at ₹235-240 (approximately $2.71-2.77) per kg, 34 count carded cotton yarn at ₹240-245 (approximately $2.77-2.83) per kg and 40 count carded cotton yarn at ₹248-253 (approximately $2.86-2.92) per kg.

In Gujarat, cotton prices were slightly lower since early this week. Prices eased down by ₹200-300 per candy of 356 kg. Traders reported weaker demand from spinning mills and tight payment conditions also discouraged buyers from new deals. The Cotton Corporation of India (CCI) is still purchasing seed cotton but may discontinue government procurement as it has already bought a large quantity of the crop. Ginners are interested in buying seed cotton at lower prices, but it was not available, creating a price disparity if they purchase seed cotton at current levels.

Cotton arrival was estimated at 28,000-30,000 bales of 170 kg in Gujarat and 145,000-150,000 bales across the country. The benchmark Shankar-6 cotton was quoted between ₹53,000-53,500 (approximately $611.84-$617.61) per candy of 356 kg, while southern mills were looking to buy cotton at ₹54,000-54,300 (approximately $623.38-$626.84) per candy. Seed cotton (Kapas) was traded at around ₹7,400-7,600 (approximately $85.43-$87.74) 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)