Mills have increased yarn prices by as much as ₹5-10 per kg, although the market could only absorb a portion of the hike. Consumer industries are facing unease due to rising yarn prices as they are not receiving a positive response from the downstream industry. Retail demand for garments and textile products has been less attractive.

A trader from Mumbai told Fibre2Fashion, "Mills have increased yarn prices by as much as ₹10 per kg in anticipation of higher export demand for cotton and yarn. Market prices could rise by up to ₹5 per kg. However, demand from the fabric manufacturing industry has not been promising. Higher cotton prices will further pressure their margins."

In Mumbai, 60 carded yarn of warp and weft varieties were sold at ₹1,450-1,475 and ₹1,330-1,400 per 5 kg (excluding GST), respectively. Other prices include 60 combed warp at ₹322-328 per kg, 80 carded weft at ₹1,420-1,460 per 4.5 kg, 44/46 carded warp at ₹257-265 per kg, 40/41 carded warp at ₹245-251 per kg, 40/41 combed warp at ₹267-271, and 30/32 carded warp at ₹235-240 per kg, according to Fibre2Fashion's market insight tool TexPro.

The Tiruppur market also experienced a rise of ₹2-3 per kg as buyers were active in seeking new deals for shipment. A trader from the Tiruppur market told F2F, "The recent surge in cotton prices has improved parity for spinning mills. Mills were raising net prices by reducing discounts and were not in a hurry to sell their production. Buyers were more desperate to book new deals before further rises in yarn prices."

In the Tiruppur market, cotton yarn prices were noted as 30 count combed cotton yarn at ₹260-265 per kg (excluding GST), 34 count combed cotton yarn at ₹267-272 per kg, 40 count combed cotton yarn at ₹280-284 per kg, 30 count carded cotton yarn at ₹234-239 per kg, 34 count carded cotton yarn at ₹240-245 per kg, and 40 count carded cotton yarn at ₹248-254 per kg, as per TexPro.

Cotton prices skyrocketed due to high levels on the ICE cotton. Cotton prices have jumped by ₹1,200-1,500 per candy of 356 kg in the last couple of days, reducing the difference between local market prices and those on the ICE. Traders said that multinational corporations were aggressively buying cotton due to the rising ICE cotton prices, trying to book as much quantity as they can. However, the market was still experiencing slow payment rotation. Cotton arrivals were 32,000-35,000 bales of 170 kg in Gujarat, with all-India arrivals estimated at 150,000-152,000 bales. In Gujarat, benchmark Shankar-6 cotton was quoted between ₹57,700-58,000 per candy of 356 kg, while southern mills intended to buy cotton at ₹58,500-58,800 per candy.

Fibre2Fashion News Desk (KUL)