The cotton yarn market in South India continues to face weak demand, especially from the downstream weaving and garment manufacturing sectors. Despite traders offering slight discounts to entice buyers, yarn prices in major hubs like Tiruppur and Mumbai have remained largely steady.
Mills are feeling the pressure of rising cotton prices and are considering price hikes, but the current muted demand is preventing them from moving forward with increases.
Industry insiders report that there’s a cautious mood among buyers, both in domestic and export markets. Textile companies are reportedly hesitant to place new or large orders due to low retail demand, liquidity constraints, and overstocking issues. Garment manufacturers are also facing delays in payments and production adjustments, further reducing yarn consumption.
In Tiruppur, 30 count combed cotton yarn is being traded at ₹265-270 per kg, while in Mumbai, similar prices prevail. The lack of price movement is attributed to steady cotton arrivals and limited demand rather than a strong supply-side push.
Traders are uncertain about how long the market will remain subdued. Many expect that unless there is a significant uptick in export orders or domestic retail demand, the market will likely remain flat. Some mills are adjusting production to manage costs and inventory levels.
The industry is closely watching global market signals, as any improvement in export interest could shift demand dynamics. Until then, the South Indian cotton yarn market is expected to remain sluggish, with little room for price recovery in the short term.
