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South India cotton yarn stable, labour shortage causes slow demand

21 Jan '25
4 min read
South India cotton yarn stable, labour shortage causes slow demand
Pic: Adobe Stock

Insights

  • South India cotton yarn prices remained steady amid slow demand.
  • Mills in Mumbai and Tiruppur are facing labour shortages and offering higher discounts.
  • Cotton prices in Gujarat eased due to reduced buying. Cotton arrivals were estimated at 34,000-35,000 bales in Gujarat.
  • Shankar-6 cotton was quoted at ₹53,500-53,800 per candy, with seed cotton priced at ₹7,500-7,575 per quintal.
South India cotton yarn prices steadied amid average to slow demand from the weaving industry. Cotton yarn was traded at the previous levels in the Mumbai and Tiruppur markets. Trade sources said that spinning mills expected higher demand in the coming weeks, but they are facing limited buying as of now. They are trying to hold cotton yarn prices. There is a labour shortage in power looms, which has reduced the supply of fabrics in the market. It has also reduced the consumption of cotton yarn. Tamil Nadu mills are also struggling to hold prices at current levels. They are feeling pressure to find buyers. South India’s market has noted higher discounts by mills.

The Mumbai market witnessed steadiness in cotton yarn prices. Power looms are facing a labour shortage because workers from Uttar Pradesh and Bihar went to Prayagraj to attend the Maha Kumbh. A trader from the Mumbai market told Fibre2Fashion, “Cotton yarn demand is almost stable, and the prices are also steady. The labour shortage has caused slower fabric supply and limited consumption of cotton yarn. There is good demand for fabric currently.”

In Mumbai, 60-carded yarn of warp and weft varieties were traded at ₹1,440-1,480 (approximately $16.64-$17.11) and ₹1,390-1,440 per 5 kg (approximately $16.07-$16.64) (excluding GST), respectively. Other prices include 60 combed warp at ₹338-344 (approximately $3.91-$3.98) per kg, 80-carded weft at ₹1,420-1,480 (approximately $16.41-$17.11) per 4.5 kg, 44/46-carded warp at ₹262-272 (approximately $3.03-$3.14) per kg, 40/41-carded warp at ₹256-266 (approximately $2.96-$3.07) per kg, and 40/41 combed warp at ₹288-294 (approximately $3.33-$3.40) per kg, according to trade sources.

Cotton yarn was traded at the previous levels in the Tiruppur market also. Mills are offering higher discounts to attract potential buyers. They are facing pressure to sell their production at current prices. A few mills have officially reduced cotton yarn rates. According to market sources, the current demand for cotton yarn is not enough to support a price rise.

In Tiruppur, knitting cotton yarn prices were noted as follows: 30 count combed cotton yarn at ₹255-263 (approximately $2.95-3.04) per kg (excluding GST), 34 count combed cotton yarn at ₹264-271 (approximately $3.05-3.13) per kg, 40 count combed cotton yarn at ₹276-288 (approximately $3.19-3.33) per kg, 30 count carded cotton yarn at ₹235-240 (approximately $2.72-2.77) per kg, 34 count carded cotton yarn at ₹240-245 (approximately $2.77-2.83) per kg, and 40 count carded cotton yarn at ₹248-253 (approximately $2.87-2.92) per kg.

In Gujarat, cotton prices further eased by ₹300-500 per candy in the past couple of days. Slow buying from spinning mills led to a decline in cotton yarn prices. Southern mills have decreased their buying prices by ₹500 per candy. Traders said that cotton seed prices have come down. Ginning mills are left with lower margins at current seed cotton prices. The Cotton Corporation of India (CCI) also rushed to the market to sell cotton seed in large quantities.

Cotton arrival was estimated at 34,000-35,000 bales of 170 kg in Gujarat and 170,000-175,000 bales in the country. The benchmark Shankar-6 cotton was quoted between ₹53,500-53,800 (approximately $618.36-$621.83) per candy of 356 kg, while southern mills were looking to buy cotton at ₹54,500-55,000 (approximately $629.92-$635.70) per candy. Seed cotton (Kapas) was traded at around ₹7,500-7,575 (approximately $86.69-$87.55) per quintal.

Disclaimer: The prices in this article are based on market sources and hence, readers are recommended to do their own research before making any decision. The publisher and their affiliates are not liable for any inaccuracies or actions taken based on this information.

Fibre2Fashion News Desk (KUL)

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