Industry leaders expect a drop in prices of Indian cotton yarn from May 1 with a growth in inventory levels. As per Textile Today, yarn prices have been falling for last 15 days by Rs 10 a kg due to low caused by the second COVID-19 wave. India’s rising COVID cases have forced many spinning mills’ workers to again migrate to their villages, interruption cotton production. The country’s yarn inventory levels have built up, says Atul Ganatra, President, Cotton Association of India.
In addition, lockdowns by many states have dampened demand for cotton yarn in the country. As many states in India have imposed curfew/lockdown, there has been a drop in the demand for cotton yarn. K Selvaraju, Secretary-General, Southern India Mills Association (SIMA), informs, warp yarn prices have dropped by Rs 30 per kg as there is surplus. Demand for weft yarn demand has also declined due to the closure of mills in Maharashtra. Spinning mills were put under tremendous pressure to bring down yarn prices despite their overheads rising due to a slew of factors, adds Selvaraju.