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North Indian cotton yarn stable, spinners push for price rise

Market sources indicated that spinning mills are receiving orders from Bangladeshi buyers for cotton yarn made from US cotton, as Bangladesh has sealed a deal to waive a ** per cent reciprocal duty on certain garments made from US cotton and manmade fibres. Traders said mills are attempting to raise cotton yarn prices citing this export demand, but domestic demand has not been supportive.

In the Ludhiana market, cotton yarn prices remained stable, although mills tried to increase prices by &#****;*–* per kg. A Ludhiana-based trader told Fibre*Fashion, “Domestic cotton yarn demand was not supportive of any price rise. However, mills tried to raise prices citing demand from Bangladesh for yarn made from US cotton.” However, there was no clarity on whether the US–Bangladesh trade deal allows third-country processing for a duty-free waiver.