Indian cotton yarn prices rise
Due to the soaring cotton prices to historical highs, cotton yarn prices in India have recently increased by over 20%. In the past three months, the prices of high-quality 40 and 60 yarn have increased from 330 rupees/kg to 405 rupees/kg, and from 415 rupees/kg to 500 rupees/kg, respectively.
After the lifting of epidemic restrictions, domestic demand for clothing in India has shown an increasing trend, with yarn prices keeping pace with cotton price increases. The Federation of Indian Textile Industries stated that cotton prices have risen by 80% since October last year, but during the same period, the price of 40 count yarn has only increased by 58%. The agency stated that although the price of blended cotton, which is popular in southern India, has risen by 126% again, the price of 80 count yarn has only increased by 38%.
According to industry organizations in India, despite the rise in cotton prices, orders from spinning mills have been pending for 45 days. As the demand for yarn increases, order in advance. Therefore, the spinning mill is currently in a favorable position. Due to strong domestic demand for natural fibers, spinning mills are now seeking to replenish cotton demand in the next 2-3 months. At present, nearly 150000 packs of new Indian cotton are launched every day, and the quality has also improved. The spinning mill currently has sufficient cotton inventory.
The Federation of Indian Textile Industries stated that due to the opening up of tourism and market restrictions, the demand in the clothing industry is strong, and even at current cotton prices, spinning mills still have some profits. However, due to strong domestic demand and fast payment cycles, India’s cotton exports have slowed down. Most spinning companies are currently catering to the domestic market. In terms of exports, Vietnam and China are the largest buyers of Indian cotton yarn, followed by the European Union and Türkiye.
