Cotton Yarn Market in South India Grapples with Plummeting Demand, Prices Plummet

In a startling turn of events, the cotton yarn market in South India is facing a severe crisis as demand takes a nosedive, resulting in a significant drop in prices. Traders are sounding the alarm, reporting panic and uncertainty in the market, making it increasingly challenging to determine prevailing rates. This dire situation has further exacerbated the decline in cotton yarn prices, with Mumbai experiencing a significant drop of ₹3-5 per kg. The ripple effects are being felt across the textile industry, as fabric prices in western India’s markets follow a similar downward trend. While the Tiruppur market in South India has managed to maintain relative stability, the persistently sluggish demand continues to present considerable challenges. Experts anticipate further price drops as the absence of buyers continues to cast a shadow over both markets.

The decline in cotton yarn prices in Mumbai can be attributed to multiple factors, including a decrease in the cost of cotton fiber. Moreover, the lackluster demand from the weaving industry has exacerbated concerns in the market. Reflecting a gloomy sentiment throughout the textile value chain, fabric prices have also witnessed a decline. Traders in the Mumbai market have expressed deep uncertainty and panic as prices continue to plummet, driven by the current scenario of limited interest in purchasing cotton.

In Mumbai, cotton yarn prices have now traded lower, with the 60 count carded cotton yarn of warp and weft varieties being sold at ₹1,460-1,490 and ₹1,320-1,360 per 5 kg (excluding GST), respectively. Other prices include 60 combed warp at ₹340-345 per kg, 80 carded (weft) cotton yarn at ₹1,410-1,450 per 4.5 kg, 44/46 count carded cotton yarn (warp) at ₹268-22 per kg, 40/41 count carded cotton yarn (warp) at ₹252-262 per kg, and 40/41 count combed yarn (warp) at ₹275-280 per kg, according to the market insight tool TexPro by Fibre2Fashion.

On the other hand, the Tiruppur market has managed to maintain relatively stable cotton yarn prices for now. However, experts predict a potential downward adjustment in the near future due to the availability of cheaper cotton and the ongoing sluggish demand from the weaving industry. The recent decline in cotton prices has brought some respite to spinners, enabling them to minimize losses and potentially reach their breakeven point. Traders in Tiruppur have refrained from reducing prices in recent days to safeguard their profit margins. Nonetheless, the availability of cheaper cotton may inevitably lead to a decline in yarn prices. Meanwhile, potential buyers are still hesitant to make new purchases, exacerbating the market’s challenges.

Prices observed in the Tiruppur market include 30 count combed cotton yarn at ₹266-272 per kg (excluding GST), 34 count combed cotton yarn at ₹277-283 per kg, 40 count combed cotton yarn at ₹287-294 per kg, 30 count carded cotton yarn at ₹242-246 per kg, 34 count carded cotton yarn at ₹249-254 per kg, and 40 count carded cotton yarn at ₹253-260 per kg, according to TexPro.

Simultaneously, Gujarat, a significant cotton producer, is grappling with its own set of woes as cotton prices experience a sharp decline. Weak sentiments in the global market and low demand from spinning mills have contributed to a notable drop of ₹1,000-1,500 per candy (356 kg) in recent days.


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