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COTTON PRICES FALL SHARPLY

COTTON PRICES FALL SHARPLY

Tamil Nadu textile industry welcomes cotton price dip

The cotton yarn price have dropped by Rs 40 per kilogram and is getting mixed reaction from the industry.

While manufacturers in Tamil Nadu’s garment hub Tiruppur are beginning to regain hope and expect a revival of international orders if the downward trend continues, players in other clusters like Ahmadabad and Panipat are not happy.

The price per cotton candy of 356 kilograms has been dropping recently which has led to a drop in yarn prices.

On July 2, the price of 40s-count cotton yarn was revised to Rs 394 per kilogram, down from Rs 434 per kilogram. However, despite the price drop, 40s-count cotton yarn is still trading far higher than its price of Rs 237 per kilogram in May, 2021, before the price hikes.

“Textile manufacturers will not get more orders just because of the 40 dip. The downward trend must continue,” said Raja M Shanmugham.

In Ahmadabad the Grey fabric arrival at the processing factories has decreased significantly due to many factories working for just four days a week.

The fabric traders are reluctant to buy grey fabric as prices are dwindling and processing houses are thus witnessing decade’s lowest level of demand.

Textiles units remained closed due to the Covid pandemic in the last two years, but this is the first time in almost a decade when processing units are staying closed for three days a week because of low demand.

North India’s yarn markets are also noticing continued pressure on prices as buyers preferred to stay away from the market.

According to traders, they will be back when they find stability.

Current prices are attractive but fall in cotton is discouraging yarn buyers.

Delhi and Ludhiana noted decline prices of cotton yarn. Recycled yarn was also down.

Cotton yarn prices slipped by Rs.10-15 per kg in Ludhiana as buyers did not want to purchase in unstable market. Most varieties of cotton yarn were sold at lower prices

Buyers are uncertain about improvement in buying from weaving and apparel industry. In Delhi, cotton yarn prices dropped by Rs. 5-10 per kg for most of counts and varieties.

30 count combed yarn was traded at Rs. 380-385 per kg (GST extra), 40 count combed at Rs. 415-420 per kg, 30 count carded at Rs.340-345 per kg and 40 count carded at Rs.380-385 per kg.

In Panipat market, 10s recycled yarn (white) was traded at Rs.90-95 per kg (excluding GST). The price of recycled polyester fibre (PET bottle fibre) was noted at Rs. 90 per kg.

Meanwhile, manufacturers are returning to recycled cotton fibre as its prices have fallen due to lower buying.

According to traders, prices have registered steep fall of up to Rs. 700 per maund of 37.2 kg.

Cotton was sold at Rs.8,500-9,000 per maund in Punjab, Rs.8,100-8,500 per maund in Haryana, and Rs.8,800-9,000 per maund in Upper Rajasthan.

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