South India cotton yarn steady amid changing market dynamics

17 Jan '25

4 min read

South India cotton yarn steady amid changing market dynamics

Pic: Adobe Stock

Insights

The South India cotton yarn market remained stable, with Mumbai and Tiruppur markets maintaining prices.
Demand for yarn rose in Tiruppur, driven by summer garment needs.
Cotton prices eased in Gujarat, but seed cotton prices increased due to higher ginner offers.
Cotton arrivals reached 170,000-180,000 bales nationwide, with Shankar-6 quoted at ₹53,700-₹54,000 per candy.

The South India cotton yarn market witnessed stability in prices as market participants weighed complex factors influencing buyers’ intentions. Cotton yarn was traded at previous levels in the Mumbai and Tiruppur markets. Trade sources said that the declining Indian Rupee against the US Dollar has benefited textile exporters, allowing them to compete in the global market. However, the same trend has shrunk the margins for cheaper imported cotton, which is providing relief to large-sized textile mills. Domestic cotton prices are set to rise in the coming weeks as ginners are offering higher prices to farmers for seed cotton (Kapas). Consequently, open market prices of seed cotton have increased to above the minimum support price at which government procurement is held. However, cotton prices are gaining compared to the rise in seed cotton prices.

The Mumbai market witnessed steadiness in cotton yarn prices. There was higher demand from the consumer industry, but buyers are not keen to purchase at higher prices. A trader from the Mumbai market told Fibre2Fashion, “The recent rise in polyester yarn has improved market sentiments. The declining Indian currency may also help exporters secure more orders from foreign buyers. However, the current export order book is not very encouraging.”

In Mumbai, 60-carded yarn of warp and weft varieties was traded at ₹1,440-1,480 (approximately $16.63-$17.09) and ₹1,390-1,440 per 5 kg (approximately $16.05-$16.63) (excluding GST), respectively. Other prices included 60 combed warp at ₹338-344 (approximately $3.90-$3.97) per kg, 80-carded weft at ₹1,420-1,480 (approximately $16.40-$17.09) 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.

The Tiruppur market also witnessed stable prices for cotton yarn. However, demand is comparatively higher this week. Domestic buyers are looking to make deals for cotton yarn purchases for summer garment production. According to market sources, if cotton prices rise, yarn prices will follow the same trend. Spinning mills are unlikely to offer discounts on cotton yarn prices if demand increases further.

In Tiruppur, knitting cotton yarn prices were recorded as follows: 30-count combed cotton yarn at ₹255-263 (approximately $2.94-$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 $2.71-$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 $2.86-$2.92) per kg.

In Gujarat, cotton prices eased by ₹200-300 per candy over the last week. However, seed cotton prices are inching up consistently as ginners offer higher prices to attract farmers. Seed cotton prices improved by ₹25-35 per quintal, rising above the minimum support prices. Traders said that ginners are likely to ramp up their buying in the coming week as seed cotton arrivals begin to decline. Seed cotton procurement by the Cotton Corporation of India (CCI) is more focused on Telangana and other southern states due to lower cotton fibre content. CCI’s buying has reduced in western states like Gujarat and Maharashtra.

Cotton arrivals were estimated at 32,000-35,000 bales of 170 kg in Gujarat and 170,000-180,000 bales across the country. The benchmark Shankar-6 cotton was quoted at ₹53,700-54,000 (approximately $620.11-$623.57) per candy of 356 kg, while southern mills were looking to buy cotton at ₹55,000-55,500 (approximately $635.12-$640.90) per candy. Seed cotton (Kapas) was traded at around ₹7,500-7,625 (approximately $86.61-$88.05) per quintal.