The production and supply halt by spinning mills based in Tamil Nadu have enhanced market sentiment in southern India. Despite the stability in cotton yarn prices, there is hope for a future upward trend. Increased lifting of cotton yarn has been observed in Mumbai and Tiruppur markets, as the weaving industry is eager to secure more raw materials. Notably, a few Tamil Nadu spinning mills have ceased cotton yarn production and sales, yet current supply remains adequate for existing demand. Nevertheless, the announcement of production cessation and forthcoming festival demand have contributed positively to market sentiment.
In Mumbai, cotton yarn prices remained constant, but demand escalated. Buyers showed an eagerness to secure cotton yarn due to anticipated price rises following production and supply cuts from spinners. A trader from the Mumbai market told Fibre2Fashion, “Although cotton yarn prices have not yet risen, the market has seen more trading. Good trading of cotton yarn has been noticed in Maharashtra’s Bhiwandi and Malegaon markets. Expectations are high for an increase in yarn prices in the near future."
In Mumbai, 60 count carded yarn of warp and weft varieties was sold at ₹1,420-1,445 and ₹1,290-1,330 per 5 kg (excluding GST), respectively. Other prices include 60 combed warp at ₹325-330 per kg, 80 carded weft at ₹1,325-1,350 per 4.5 kg, 44/46 carded warp at ₹254-260 per kg, 40/41 carded warp at ₹242-246 per kg and 40/41 combed warp at ₹270-275 per kg, according to Fibre2Fashion's market insight tool TexPro.
Tiruppur's market also saw an uptick in cotton yarn trade, driven by the weaving industry. However, yarn prices remained consistent. Purusottam Parmanandka, joint managing director of Tiruppur-based yarn trading company Kesharinandan Knit Fabrics Pvt Ltd, told Fibre2Fashion, "Some smaller mills have stopped cotton yarn production, which has led to increased lifting of the material. Despite this, there hasn't been a shortage in the market due to the production halt."
Prices in the Tiruppur market were noted as 30 count combed cotton yarn at ₹255-262 per kg (excluding GST), 34 count combed cotton yarn at ₹265-272 per kg, 40 count combed cotton yarn at ₹275-282 per kg, 30 count carded cotton yarn at ₹230-236 per kg, 34 count carded cotton yarn at ₹238-245 per kg and 40 count carded cotton yarn at ₹241-246 per kg, as per TexPro.
Cotton prices in Gujarat have observed an upward trend due to concerns about crop yield, both domestically and in the US. Even with heavy rainfalls in north India, the central cotton-producing region faces inadequate rain, which could negatively affect the domestic crop. Some regions may require reseeding due to flood damage and heavy rainfalls. Additionally, fears over hotter weather in the US potentially harming cotton crops have led to a rise in ICE cotton prices. Cotton prices in Gujarat have increased by ₹300 per candy (356 kg). Shankar-6 cotton was quoted between ₹56,000-56,500 per candy. The cotton arrival was approximately 8,000 bales (170 kg each) in Gujarat, and the all-India arrival was estimated at 30,000-32,000 bales of 170 kg.