South Indian cotton yarn market stable amid focus on election results

04 Jun '24

3 min read

South Indian cotton yarn market stable amid focus on election results

Pic: Adobe Stock

Insights

South India's cotton yarn trade noticed a political focus on election result day, with prices remaining stable amid limited trade.
Buyers and sellers were preoccupied with the election outcomes, causing slow demand and discouraging new purchases.
In Mumbai and Tiruppur, cotton yarn prices stayed steady despite weak demand.
Cotton prices declined in Gujarat.

Activity in south India's cotton yarn market remained subdued today as election results frenzy grips the nation. Cotton yarn prices remained stable. Traders said that although there was no direct and immediate influence of the poll results on textile industry-related policies, buyers and sellers had a general keenness regarding political developments. Slow lifting from the downstream industry and a bearish trend in cotton prices also discouraged buyers from making new purchases.

Cotton yarn was traded at the previous level amid slow demand. Mills and stockists also stayed away from the trade, as they were busy with political discussions. A trader from Mumbai told Fibre2Fashion, "Buyers as well as sellers were more interested in waiting for a few days. They wanted to know who would get the mandate in the Lok Sabha election. The textile industry has a long wish list for the revival of demand."

In Mumbai, 60 carded yarn of warp and weft varieties were sold at ₹1,410-1,460 (approximately $16.95-$17.55) and ₹1,280-1,360 per 5 kg (approximately $15.39-$16.35) (excluding GST), respectively. Other prices include 60 combed warp at ₹329-333 (approximately $3.96-$4.00) per kg, 80 carded weft at ₹1,360-1,400 (approximately $16.35-$16.83) per 4.5 kg, 44/46 carded warp at ₹257-262 (approximately $3.09-$3.15) per kg, 40/41 carded warp at ₹252-260 (approximately $3.03-$3.13) per kg, 40/41 combed warp at ₹290-295 (approximately $3.49-$3.55) per kg, and 30/32 carded warp at ₹245-248 (approximately $2.95-$2.98) per kg, according to trade sources.

The Tiruppur market also saw stability in cotton yarn prices. The market noted poor demand as weaker cotton prices discouraged buyers. Trade sources said that buyers preferred to wait for a couple of days. People are buying cotton yarn for immediate needs only. Although the new government will not take immediate action for the textile industry, buyers were keen to know the poll results and the future of the new government.

In Tiruppur, knitting cotton yarn prices were noted on Thursday as: 30 count combed cotton yarn at ₹268-273 (approximately $3.22-3.28) per kg (excluding GST), 34 count combed cotton yarn at ₹277-282 (approximately $3.32-3.38) per kg, 40 count combed cotton yarn at ₹290-295 (approximately $3.48-3.54) per kg, 30 count carded cotton yarn at ₹239-243 (approximately $2.87-2.92) per kg, 34 count carded cotton yarn at ₹245-249 (approximately $2.94-2.99) per kg and 40 count carded cotton yarn at ₹251-256 (approximately $3.01-3.07) per kg.

In Gujarat, cotton prices have declined ₹1,000 per candy of 356 kg in a couple of days. Although domestic cotton prices have followed the downtrend of ICE cotton, the drop in Indian cotton prices remained lower than the price fall in ICE cotton. Trade sources said that domestic cotton prices are driven by ICE cotton but take cues from local fundamentals. The Indian textile industry will have to wait for at least three months for new cotton arrivals.

Cotton arrivals were recorded at 14,000-15,000 bales of 170 kg in Gujarat, with all-India arrivals estimated at 40,000-45,000 bales. In Gujarat, the benchmark Shankar-6 cotton was quoted between ₹56,000-56,500 (approximately $670.36-$676.35) per candy of 356 kg, while southern mills were looking to buy cotton at ₹57,000-57,500 (approximately $682.33-$688.32) per candy.