|
Rising cotton prices squeeze yarn margins in south India

11 Jul '25

4 min read

Rising cotton prices squeeze yarn margins in south India

Insights

South India's cotton yarn market remains sluggish amid rising production costs and weak demand from the garment industry.
Despite a ***–**** per cent rise in cotton prices, yarn rates in Tiruppur and Mumbai stayed stable, straining mill margins.
Traders cite tariff uncertainty linked to Trump's policies as a key dampener.
In Gujarat, cotton prices rose due to limited stock and CCI's upward auction revisions.

The Tiruppur market is expected to see an increase in cotton yarn prices as mills raise selling rates. Although demand from the downstream industry remains sluggish, the rising cost of cotton is supporting yarn prices. A trader from Tiruppur told Fibre2Fashion, “Cotton prices have increased by *–* per cent in the last two weeks. However, yarn prices have remained stable, resulting in losses for spinning mills. They have reduced discounts to protect their margins. Cotton yarn market prices may increase in the coming weeks.”

In Tiruppur, knitting cotton yarn prices were noted as ** count combed cotton yarn at &#****;***-*** (~$*.**-*.**) per kg (excluding GST), ** count combed cotton yarn at &#****;***-*** (~$*.**-*.**) per kg, ** count combed cotton yarn at &#****;***-*** (~$*.**-*.**) per kg, ** count carded cotton yarn at &#****;***-*** (~$*.**-*.**) per kg, ** count carded cotton yarn at &#****;***-*** (~$*.**-*.**) per kg and ** count carded cotton yarn at &#****;***-*** (~$*.**-*.**) per kg.