Summer surge lifts cotton yarn prices in south India, no tariff impact

In the Mumbai market, stronger demand from looms has been observed as they ramp up production to meet summer requirements. As a result, cotton yarn prices have increased by ₹3–5 per kg in the past couple of days. Despite the announcement of tariffs by the US, the market has not shown a significant reaction. A trader from Mumbai told Fibre2Fashion, “Seasonal demand for cotton yarn has picked up as power looms and auto looms are trying to ramp up production before workers leave for their summer holidays. They typically travel to their native places for a long annual break during the summer, beginning in mid-April. Loom owners are trying to produce more fabric to cater to summer demand. Recent gains in cotton prices have also contributed to the rise in yarn prices in the Mumbai market.”

In Mumbai, 60 carded yarn of warp and weft varieties were traded at ₹1,420-1,445 (approximately $16.16-$16.95) and ₹1,360-1,400 per 5 kg (approximately $15.96-$16.43) (excluding GST), respectively. Other prices include 60 combed warp at ₹322-326 (approximately $3.78-$3.83) per kg, 80 carded weft at ₹1,400-1,460 (approximately $16.43-$17.13) per 4.5 kg, 44/46 carded warp at ₹270-275 (approximately $3.17-$3.23) per kg, 40/41 carded warp at ₹255-262 (approximately $2.99-$3.07) per kg and 40/41 combed warp at ₹272-275 (approximately $3.19-3.23) per kg, according to trade sources.

In the Tiruppur market, cotton yarn prices also rose by ₹2 per kg. Several mills have increased selling prices by ₹2–3 per kg in the past few days to offset the rise in cotton prices. Market sources indicated that mills had been trying for a long time to raise prices and have finally succeeded due to stronger demand from the weaving and garment segments. The market is still awaiting clarity on the impact of the US reciprocal tariff policy.

In Tiruppur, knitting cotton yarn prices were noted as 30 count combed cotton yarn at ₹257-265 (approximately $3.02-3.11) per kg (excluding GST), 34 count combed cotton yarn at ₹266-273 (approximately $3.12-3.20) per kg, 40 count combed cotton yarn at ₹278-291 (approximately $3.26-3.41) per kg, 30 count carded cotton yarn at ₹237-242 (approximately $2.78-2.84) per kg, 34 count carded cotton yarn at ₹242-247 (approximately $2.84-2.90) per kg and 40 count carded cotton yarn at ₹250-255 (approximately $2.93-2.99) per kg.

In Gujarat, cotton prices rose by ₹200–300 per candy of 356 kg due to strong demand from spinning mills. This upward trend continued despite a decline in ICE cotton prices following the tariff announcement. Traders reported that the Cotton Corporation of India (CCI) is selling cotton at rates higher than the market price. Demand strength is evident, with spinning mills quoting ₹500–800 per candy above the CCI’s base auction price. Although falling ICE cotton may add pressure to domestic prices, CCI’s higher auction prices and robust mill demand are creating a bullish outlook.

Cotton arrivals were estimated at 6,000–7,000 bales of 170 kg in Gujarat and 60,000–65,000 bales across the country. The benchmark Shankar-6 cotton was quoted at ₹53,700–54,000 (approximately $630.08–$633.60) per candy of 356 kg, while southern mills were looking to buy at ₹54,700–55,000 (approximately $641.81–$645.33) per candy. Seed cotton (kapas) was traded at around ₹7,480–7,550 (approximately $87.77–$88.59) 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)