Cotton Prices Remain Stable In Southern India, And Demand For Cotton Yarn Slows Down

Cotton Prices Remain Stable In Southern India, And Demand For Cotton Yarn Slows Down
Gubang cotton prices are stable at Rs. 61000-61500 per Kandi (356 kg). Traders said cotton prices remained stable amid slowing demand. Cotton prices rose on Monday, following a sharp decline in the previous week. Ginners’ interest in cotton production declined after cotton prices fell last week. Therefore, if cotton prices do not improve soon, ginners may stop production when the cotton season enters the final stage.

Despite slowing demand from downstream industries, cotton yarn prices in southern India remained stable on Tuesday. Mumbai and Tirupur cotton yarn prices remain at their previous levels. However, textile and clothing industries in southern India are facing a labor shortage due to the absence of foreign workers after the Holi Festival, as spinning mills are selling yarn on a large scale in Madhya Pradesh.

The weak demand in the downstream industry in Mumbai has brought additional pressure to spinning mills. Traders and textile mill owners are trying to assess the impact on prices. The shortage of labor is another problem facing the textile industry.

Bombay 60 count combed warp and weft yarns are traded at INR 1525-1540 per 5 kg and INR 1400-1450 (excluding GST). Rupees 342-345 per kilogram for 60 counts of combed warp yarn. At the same time, 80 counts of rough weft yarn are sold at Rs 1440-1480 per 4.5 kg, 44/46 counts of rough warp yarn at Rs 280-285 per kg, 40/41 counts of rough warp yarn at Rs 260-268 per kg, and 40/41 counts of combed warp yarn at Rs 290-303 per kg.

Tirupur shows no signs of improving sentiment, and labor shortages may put pressure on the entire value chain. Nevertheless, cotton yarn prices remained stable because textile companies had no intention of reducing prices. The transaction price for 30 counts of combed cotton yarn is INR 280-285 per kilogram (excluding GST), INR 292-297 per kilogram for 34 counts of combed cotton yarn, and INR 308-312 per kilogram for 40 counts of combed cotton yarn. At the same time, 30 counts of cotton yarn are priced at Rs 255-260 per kilogram, 34 counts of cotton yarn are priced at Rs 265-270 per kilogram, and 40 counts of cotton yarn are priced at Rs 270-275 per kilogram.