There has been an upsurge in purchasing intentions in the south Indian cotton yarn market. Cotton yarn was constant in Tirupur market, despite Mumbai having slightly better prices and dealers seeking 2-4 per kg more money. Better purchasing attitudes and a rise in the demand for hosiery clothing in Tirupur have been attributed to new bargains and the summer season.
Since dealers and stockists got more trade inquiries, the demand for cotton yarn in Mumbai has increased. A trader from Mumbai was quoted as saying, “Buyers felt, cotton yarn will bottom out next month. These expectations have improved market sentiments and encouraged buyers. Although, demand from downstream industry was not very promising.”
Due to the regional concentration of hosiery clothing, demand was slightly higher in the Tirupur market despite unchanged cotton yarn prices. Throughout the summer, there is a rise in the demand for hosiery clothes, which increases cotton yarn purchases.
“Cotton yarn buying was slightly higher in comparison of previous months. However, it was not comparable with the buying during the same month of the last few years,” a Tirupur-based trader was quoted as saying.
Due to decreased arrival and improved buying, cotton prices in Gujarat have climbed by Rs 1,000 to Rs 61,000–62,000 per candy of 356 kg. According to industry sources, spinners are charging higher costs because they want to increase their purchasing. Compared to north Indian spinners, mills headquartered in south India were offering higher costs. In Gujarat, the arrival of cotton fell from 30,000 bales of 170 kg to 25,000 bales, and the total arrival in India was projected to be less than 100,000 bales.
