Cotton yarn prices up in Tiruppur as buyers shift from Bangladesh

06 Sep '24

4 min read

Cotton yarn prices up in Tiruppur as buyers shift from Bangladesh

Pic: Adobe Stock

Insights

Cotton yarn prices in south India showed mixed trends, with Tiruppur witnessing a rise of ₹3-4 per kg due to increased export inquiries and cotton price surges, while Mumbai prices remained unchanged due to low demand.
Heavy rains caused crop damage, pushing up cotton prices by ₹1,000-1,500 per candy.
Tiruppur mills raised yarn prices as demand improved.

Cotton yarn prices in south India showed a mixed trend, with a notable increase of ₹3-4 per kg in the Tiruppur market. However, the Mumbai market saw no significant price movement. Trade sources from the southern export hub attributed the rise in Tiruppur to increased export inquiries, as buyers shift away from Bangladesh, and a surge in cotton prices due to heavy rains. Spinning mills have responded by raising yarn prices to match the evolving market conditions. In contrast, sources in Mumbai reported no improvement in demand, though prices could rise in other markets across the country.

The Tiruppur market witnessed an increase of ₹3-4 per kg across various counts and varieties. Mills are raising cotton yarn prices amid changing market dynamics. A trader from the Tiruppur market told Fibre2Fashion, "Cotton yarn prices have risen in the last few days as demand has improved across the entire textile value chain. Lower prices and the possibility of more export orders for garments have encouraged buyers to stock up on raw materials. Indian exporters are expected to receive more orders as buyers are diverting their purchases from Bangladesh. Additionally, recent reports of crop damage due to heavy rains have contributed to the increase in cotton yarn prices.”

In Tiruppur, knitting cotton yarn prices were noted as 30 count combed cotton yarn at ₹268-276 (approximately $3.19-3.29) per kg (excluding GST), 34 count combed cotton yarn at ₹277-284 (approximately $3.30-3.38) per kg, 40 count combed cotton yarn at ₹290-296 (approximately $3.46-3.53) per kg, 30 count carded cotton yarn at ₹242-249 (approximately $2.88-2.97) per kg, 34 count carded cotton yarn at ₹251-255 (approximately $2.99-3.04) per kg and 40 count carded cotton yarn at ₹255-262 (approximately $3.04-3.12) per kg.

However, cotton yarn prices remained steady in the Mumbai market, with no signs of increased demand from the consumer industry. According to market sources, buyers were reluctant to make fresh purchases, adopting a wait-and-see approach. They may rush to the market once they feel more confident.

In Mumbai, 60 carded yarn of warp and weft varieties were sold at ₹1,390-1,450 (approximately $16.56-$17.28) and ₹1,280-1,380 per 5 kg (approximately $15.24-$16.44) (excluding GST), respectively. Other prices include 60 combed warp at ₹318-322 (approximately $3.79-$3.84) per kg, 80 carded weft at ₹1,310-1,350 (approximately $15.61-$16.08) per 4.5 kg, 44/46 carded warp at ₹246-262 (approximately $2.93-$3.12) per kg, 40/41 carded warp at ₹241-249 (approximately $2.87-$2.97) per kg and 40/41 combed warp at ₹280-285 (approximately $3.34-3.40) per kg, according to trade sources.

In Gujarat, cotton prices have jumped by ₹1,000-1,500 per candy (356 kg) since last week. Prices have risen steeply following reports of crop damage and delays caused by heavy rains in several southern and central states of India. Traders report significant damage in many areas of Gujarat, Maharashtra, Karnataka, and Telangana. Continued rains in these major cotton-producing states will also delay new arrivals. Cotton prices surged due to crop concerns related to the delayed monsoon rains. Spinning mills are attempting to secure cotton by offering higher prices.

All-India cotton arrivals were estimated at no more than 4,000-5,000 bales (170 kg each). The benchmark Shankar-6 cotton was quoted between ₹60,000-60,500 (approximately $714.86-$720.82) per candy (356 kg), while southern mills were looking to buy cotton at ₹61,000-61,500 (approximately $726.77-$732.73) per candy.