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South India cotton yarn jumps as mills see favourable market condition

Recent fall in Indian rupee against US further improved viability of Indian cotton yarn in export market. Mills have indicated that they are facing price disparity for long time. Therefore, they are trying to come out from these losses in current favourable market conditions. Market sources said that despite the rise in cotton yarn prices, fabric demand from the garment industry remains weak.

In the Mumbai market, cotton yarn prices increased by &#****;*-* per kg as spinning mills have raised ex-mill rate even higher. A Mumbai-based trader told Fibre*Fashion, “Spinning mills are probably trying to improve their margins. They have raised mill rates further, and therefore buyers are willing to pay slightly more, expecting some benefit from the price hike. However, power looms are utilising only about ** per cent of their production capacity, while the garment industry remains hesitant to make bulk purchases.”