South Indian cotton yarn prices steady amid demand, export woes

18 Apr '25

4 min read

South Indian cotton yarn prices steady amid demand, export woes

Pic: Shutterstock

Insights

Cotton yarn prices in south India remained steady today despite weak demand and export uncertainty.
Labour shortages affected production in Mumbai, while average demand kept Tiruppur stable.
Export concerns, especially from the US and Bangladesh, dampened market sentiment.
In Gujarat, cotton prices rose due to limited stocks and strong ICE cotton support.

South India’s cotton yarn prices remained steady amid slow demand and uncertainty regarding garment and textile product exports. The Mumbai market witnessed very low demand due to a shortage of workers in power and auto looms. However, cotton yarn prices did not experience any significant movement. In Tiruppur, average demand helped stabilise cotton yarn prices. Traders noted that strong cotton prices prevented yarn prices from easing, despite weak demand. Bangladesh has already imposed restrictions on yarn imports from India, which has dampened sentiment in the domestic yarn market. The tariff issue also remains unclear, leaving doubts about whether it will boost India’s exports. There are reports that US buyers are pressuring Indian exporters to hold current consignments.

In the Mumbai market, cotton yarn prices remained stable. There were fewer buyers due to worker shortages in the power and auto loom sectors. Workers, mostly from Uttar Pradesh and Bihar, typically return to their native places during the summer for 15 to 30 days. A trader from the Mumbai market told Fibre2Fashion, “Fabric production activities have slowed down in Maharashtra and other regions. Manufacturers and stockists have sufficient fabric inventory to meet the garment industry's demand. Export uncertainty is also discouraging cotton yarn buying in the market.”

In Mumbai, 60 carded yarn of warp and weft varieties were traded at ₹1,420-1,445 (approximately $16.63-$16.92) and ₹1,360-1,400 per 5 kg (approximately $15.93-$16.40) (excluding GST), respectively. Other prices include 60 combed warp at ₹322-326 (approximately $3.77-$3.82) per kg, 80 carded weft at ₹1,400-1,460 (approximately $16.40-$17.10) per 4.5 kg, 44/46 carded warp at ₹270-275 (approximately $3.16-$3.22) per kg, 40/41 carded warp at ₹255-262 (approximately $2.99-$3.07) per kg and 40/41 combed warp at ₹272-275 (approximately $3.19-3.22) per kg, according to trade sources.

In Tiruppur, average demand from the consumer industry was observed. Buyers remain concerned about garment export orders from the US. Importers are even reluctant to accept consignments under previous orders due to tariff-related challenges. Market sources stated that although cotton prices are gradually increasing, yarn prices remain steady due to lacklustre demand. Buyers are waiting for clarity on export prospects.

In Tiruppur, knitting cotton yarn prices were noted as 30 count combed cotton yarn at ₹257-265 (approximately $3.01-3.10) per kg (excluding GST), 34 count combed cotton yarn at ₹266-273 (approximately $3.12-3.20) per kg, 40 count combed cotton yarn at ₹278-291 (approximately $3.26-3.41) per kg, 30 count carded cotton yarn at ₹237-242 (approximately $2.78-2.83) per kg, 34 count carded cotton yarn at ₹242-247 (approximately $2.83-2.89) per kg and 40 count carded cotton yarn at ₹250-255 (approximately $2.93-2.99) per kg.

In Gujarat, cotton prices rose by ₹300–500 per candy of 356 kg due to limited stock availability. Firmer ICE cotton futures also supported local natural fibre prices. Traders said buyers are struggling to find stock from private sellers, as most stockists, ginners, and multinational companies did not accumulate cotton due to price disparities. The Cotton Corporation of India (CCI) has purchased a large portion of the output at the higher minimum support price (MSP).

Cotton arrivals were estimated at 6,000–7,000 bales of 170 kg in Gujarat and 35,000–40,000 bales across the country. The benchmark Shankar-6 cotton was quoted between ₹54,000–54,500 (approximately $632.41–$638.27) per candy of 356 kg, while southern mills were seeking cotton at ₹55,000–55,500 (approximately $644.12–$649.98) per candy.