Mixed trend in south Indian cotton yarn market, prices ease in Mumbai

14 Feb '25

4 min read

Mixed trend in south Indian cotton yarn market, prices ease in Mumbai

Pic: Adobe Stock

Insights

South Indian cotton yarn market exhibits mixed trends with stable prices in Tiruppur despite higher demand, and declining prices in Mumbai due to weak demand and payment issues.
Payment difficulties are expected to persist until the end of this fiscal.
In Gujarat, cotton prices have slightly decreased due to lower demand and ICE cotton trends.
CCI has halted purchases due to technical issues.

The cotton yarn trade in South India has shown mixed trends. The Tiruppur market has experienced a slightly higher demand for cotton yarn, although its prices have remained stable. In contrast, the Mumbai market has seen weaker demand, and cotton yarn prices have decreased by ₹2-3 per kg in the last few days. Market sources have indicated that payment issues are likely to persist until the end of the current fiscal in March. The slow payment flow is impacting the purchasing capacity of cotton yarn consumer industries. Reduced demand for fabric and garments has also discouraged cotton yarn purchases. However, traders expect that cotton yarn prices might rise in April when the new fiscal 2025-26 begins.

The Tiruppur market has seen better yarn demand following recent increases in cotton prices. However, increased buying has not led to higher cotton yarn prices. A trader from the Mumbai market told Fibre2Fashion, “Higher cotton prices have given spinning mills a reason to increase yarn prices. Mills may raise their selling prices when market conditions are favourable, but payment conditions are still challenging and may not improve until the end of the current fiscal.”

In Tiruppur, knitting cotton yarn prices were noted as 30 count combed cotton yarn at ₹255-263 (approximately $2.94-3.03) per kg (excluding GST), 34 count combed cotton yarn at ₹264-271 (approximately $3.04-3.12) per kg, 40 count combed cotton yarn at ₹276-288 (approximately $3.18-3.32) per kg, 30 count carded cotton yarn at ₹235-240 (approximately $2.71-2.76) per kg, 34 count carded cotton yarn at ₹240-245 (approximately $2.76-2.82) per kg and 40 count carded cotton yarn at ₹248-253 (approximately $2.86-2.91) per kg.

The Mumbai market has experienced weak demand for cotton yarn as buyers face payment constraints due to SME payment rules. Prices have decreased by ₹2-3 per kg as buyers seek more attractive prices. According to market sources, mills and stockists are offering higher discounts to sell cotton yarn. Finding potential buyers has become an uphill task for mills and stockists.

In Mumbai, 60 carded yarn of warp and weft varieties were traded at ₹1,430-1,470 (approximately $16.47-$16.93) and ₹1,320-1,360 per 5 kg (approximately $15.20-$15.66) (excluding GST), respectively. Other prices include 60 combed warp at ₹325-330 (approximately $3.74-$3.80) per kg, 80 carded weft at ₹1,440-1,500 (approximately $16.59-$17.28) per 4.5 kg, 44/46 carded warp at ₹262-272 (approximately $3.02-$3.13) per kg, 40/41 carded warp at ₹271-274 (approximately $3.12-$3.16) per kg and 40/41 combed warp at ₹278-284 (approximately $3.20-3.27) per kg, according to trade sources.

In Gujarat, cotton prices have slightly decreased by ₹200-300 per candy of 356 kg. Slow purchasing by spinning mills and a weakening trend in ICE cotton prices have contributed to this decline. The Cotton Corporation of India (CCI) has stopped purchasing seed cotton from farmers due to a technical issue in its purchasing system. However, its purchases have nearly reached around 90 lakh bales and may reach 100 lakh bales this season. Traders have noted that cotton prices were almost stable amid limited buying, but they may increase in the coming months as CCI has already secured a large quantity of cotton this season. It will be available at approximately 10 per cent higher prices only during the off-peak season.

Cotton arrival was estimated to 22,000-28,000 bales of 170 kg in Gujarat and 130,000-135,000 bales in the country. The benchmark Shankar-6 cotton was quoted between ₹52,800-53,300 (approximately $608.16-$613.92) per candy of 356 kg, while southern mills were looking to buy cotton at ₹53,700-54,000 (approximately $618.53-$621.98) per candy. Seed cotton (Kapas) was traded at around ₹7,500-7,625 (approximately $86.39-$87.83) per quintal.

Cotton arrivals were estimated at 22,000-28,000 bales of 170 kg in Gujarat and 130,000-135,000 bales nationwide. The benchmark Shankar-6 cotton was quoted between ₹52,800-53,300 (approximately $608.16-$613.92) per candy of 356 kg, while southern mills were looking to purchase cotton at ₹53,700-54,000 (approximately $618.53-$621.98) per candy. Seed cotton (Kapas) was traded at around ₹7,500-7,625 (approximately $86.39-$87.83) per quintal.