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South India yarn struggles amid tariff uncertainty, rising fibre costs

04 Jul '25

3 min read

South India yarn struggles amid tariff uncertainty, rising fibre costs

Insights

Cotton yarn markets in south India showed limited movement as spinning mills attempted to raise prices amid rising cotton costs.
However, uncertainty over the India-US trade deal and possible tariff hikes post-**** dampened demand.
Buyers are cautious, and mills have reduced discounts.
Tiruppur saw stable prices, while Mumbai witnessed weak sales despite higher quotes.

The Tiruppur market witnessed stable cotton yarn prices. However, mills have reduced discounts to raise their selling rates and offset the increased cost of cotton. Cotton prices surged due to higher buying by spinning mills under the Cotton Corporation of India auction sales. A trader from the Tiruppur market told Fibre2Fashion, “Buyers are very cautious about purchasing cotton yarn as they are unsure of strong demand from the downstream industry. In fact, uncertainty surrounding US tariffs in the near future has discouraged not only foreign garment buyers but also consumer industries. Nevertheless, spinning mills are cutting discounts on cotton yarn prices following the rise in raw material costs.”

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.