Overall, a bearish trend has been observed in the South Indian cotton yarn trading market. Traders indicated that the demand for yarn fell further due to the uncertainty of buying from the declining industry. The market is also facing financial crisis as traders across the entire textile value chain do not receive their due payments from buyers.
Figure: A bearish trend has been observed in the South Indian cotton yarn trading market, price falls in Mumbai.
However, Tirupur market, maintained stable prices in the face of average demand. Cotton yarn prices in Mumbai fell by ₹5-7 per kg. On the other hand, Gujarat’s cotton trade has come to a standstill due to the cyclone and is not expected to resume before next week.
In Tirupur market, it is seen that price of 30 count combed cotton yarn is ₹264-270 per kg (excluding GST), 34 count combed cotton yarn is ₹275-280 per kg, 40 count combed cotton yarn is ₹285-292 per KG, 30 count carded cotton yarn is ₹240-245 per kg, 34 count carded cotton yarn ₹247-252 per kg and 40 count carded cotton yarn ₹250-257 per kg.
In Mumbai, cotton yarn prices fell due to further slowdown in demand. Buyers have become more cautious about new purchases due to weak demand in both domestic and export markets. According to traders, yarn prices fell as traders, stockists and mills were forced to reduce prices in the current market conditions. They think, the market is unlikely to improve soon. Cyclone in Gujarat and other parts of western India has also affected the market.
According to market report, in Mumbai, 60 count carded cotton yarn and weft varieties were sold at ₹1,450-1,480 and ₹1,320-1,340 per 5 kg (excluding GST), respectively. Other prices include 60 combed warp ₹335-345 per kg, 80 carded (weft) cotton yarn ₹1,400-1,430 per 4.5 kg, 44/46 count carded cotton yarn (warp) ₹264-272 per kg, 40/41 count carded cotton yarn (warp) ₹256-264 per kg and 40/41 count combed yarn (warp) ₹277-282 per kg.
