Thanks to weak demand at peak levels and the import of yarn from Vietnam, the cotton and cotton yarn prices have started falling, especially in Gujarat.
As per market insiders, about 1,000 containers of cotton yarn are expected to arrive by the second week of July from Vietnam. Due to this, prices of cotton yarn have fallen sharply. 20 Comb open end yarn prices have decreased from Rs. 330 per kg to Rs. 275 per kg.
Cotton yarn 30 Comb prices have come down from a high of Rs. 405 per kg to Rs. 380.
The price of good quality cotton has come down to Rs. 1.02 lakh per candy (356kg) from Rs. 1.10 lakh. Similarly, the price of the weaker quality cotton is now Rs. 92,000 per candy, while earlier the same was Rs. 1 lakh per candy.
“We have seen cotton prices increase by almost three times and that has impacted the demand. Traders are cautious in buying materials at higher prices so the demand is weak. Some players have put in cotton yarn import orders,” said Bharat Chhajer, former chairman of Powerloom Development & Export Promotion Council.
Saurin Parikh, President, Spinners Association Gujarat (SAG), also shared that the demand of cotton and cotton yarn is down by almost 30 per cent.
He added that spinning mills across the state are passing through challenging times, and he doesn’t see any respite before the arrival of new cotton crop in September.
