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Sentiments improve in south Indian cotton yarn trade as demand rises

15 Jul '25

3 min read

Sentiments improve in south Indian cotton yarn trade as demand rises

Insights

Rising cotton prices have lifted sentiment in south India's yarn trade, with improved demand in Mumbai and Tiruppur.
Loom activity and reduced worker absenteeism have boosted consumption, while mills cut discounts to protect margins.
Traders are optimistic about a potential India-US trade deal.
Cotton prices in Gujarat have surged by *–* per cent, driven by higher CCI auction rates and limited stocks.

In the Mumbai market, cotton yarn demand improved as the loom sector ramped up fabric production. Rising cotton prices are also encouraging buyers to place fresh orders. A trader from the Mumbai market told Fibre2Fashion, “Power looms and auto looms are seeing strong worker attendance, which has boosted cotton yarn consumption. Notably, fabric production has improved in Surat, Gujarat’s major textile hub. Buyers are closing deals without negotiating for discounts. Cotton yarn prices may rise in the near future.”

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.