A significant decline has been observed in cotton prices, approximately Rs 3,000 per candy, stimulating demand in the domestic market and enhancing the competitiveness of Indian cotton yarn manufacturers in the export market.
The reduction in cotton prices has been complemented by a drop in yarn prices to Rs 245 per kg (30 comb). This is expected to increase both domestic and international demand, particularly in the run-up to Diwali.
Both the events can result in a 10% decrease in ready-made garments prices this Diwali season compared to the previous year. A significant relief for consumers in the festive season. Also, it wil be beneficial for exporters as they will get a competitive edge against rivals such as China, Bangladesh and Vietnam.
Experts predict that the cotton prices, which have been volatile, will stabilize in the coming months. This stability should bring about a decline in retail prices post-August, a boon for consumers.