A surge in cotton prices along with growing demand from domestic and international market has led to a sharp rise in Indian cotton yarn prices. As per a SRTEPC report, prices of 30s combed yarn used by the hosiery sector have rised by 30-40 per cent by export merchants in Gujarat over the last few weeks. Dealers can buy at least two months of production from a number of spinning mills, says Anand Poppat, a Rajkot-based dealer of uncooked cotton, yarn and spinning waste.
The Trading Economics Website also indicates a gain of over 13 per cent as cotton prices rose almost 10 per cent in February .Global cotton prices are rising due to higher imports from China. The rise in Indian cotton prices has come despite the country carrying over record stocks of cotton from last season, says Ashwin Chandran, Chairman, Southern India Mills Association (SIMA).
As the textile sector started working at close to optimum capability, demand for yarn elevated since December 2020. This resulted in greater yarn production, however prices have elevated, primarily, as cotton prices gained. For instance, the 40s depend warp yarn topped Rs 300 a kg however has now dropped to Rs 275-285. Hosiery yarn prices are nonetheless decrease. Besides home demand, which has resulted in panic shopping, export shopping has additionally pushed up yarn prices.
