|
Payment issues in south India's cotton yarn; fabric demand offers hope

11 Feb '25

4 min read

Payment issues in south India's cotton yarn; fabric demand offers hope

Insights

Cotton yarn trade in south India and Mumbai is experiencing slow demand due to ongoing payment issues, impacting both domestic and export markets.
In Mumbai, prices for various types of cotton yarn remained stable despite a bearish market sentiment.
Tiruppur also reported weak domestic demand, though export demand offers some support due to the depreciating rupee.
In Gujarat, cotton prices rose.

The Mumbai market witnessed a bearish tone in cotton yarn trade as buyers were cautious about fresh purchases. They are facing payment issues as everyone wants to focus on clearing payments due to obligations to small and micro enterprises. However, cyclic slow buying is also considered a responsible factor. A trader from the Mumbai market told Fibre2Fashion, “Currently, cotton yarn demand is slow due to the payment crisis. Power loom owners may come back for buying as they are getting better than average fabric demand. They will buy cotton yarn when they consume their present stock for fabric production. But strong demand can be expected in case of an ease in payment flow.”

In Mumbai, ** carded yarn of warp and weft varieties were traded at &#****;*,***-*,*** (~$**.**-$**.**) and &#****;*,***-*,*** per * kg (~$**.**-$**.**) (excluding GST), respectively. Other prices include ** combed warp at &#****;***-*** (~$*.**-$*.**) per kg, ** carded weft at &#****;*,***-*,*** (~$**.**-$**.**) per *.* kg, **/** carded warp at &#****;***-*** (~$*.**-$*.**) per kg, **/** carded warp at &#****;***-*** (~$*.**-$*.**) per kg and **/** combed warp at &#****;***-*** (~$*.**-*.**) per kg, according to trade sources.