The cotton yarn market in South India has experienced mixed trends recently, reflecting a divergence in regional markets. In Mumbai, prices have seen a decline, primarily due to weak demand and tight payment conditions. This has put pressure on sellers and manufacturers in the region. Despite this, the market in Tiruppur, a major cotton yarn hub in Tamil Nadu, has remained relatively stable, indicating a contrasting trend. Local market participants are hopeful that the situation will improve, with expectations of price hikes in the coming month, as cotton prices rise and payment conditions gradually improve.
Meanwhile, in Gujarat, cotton prices have been on an upward trajectory, driven by strong demand from spinners and higher cotton prices at the Cotton Corporation of India (CCI) auctions. This surge in cotton prices is likely to influence the cotton yarn market across various regions in India. The growth in cotton prices in Gujarat is expected to provide a boost to the spinning industry, with a subsequent positive impact on cotton yarn production.
The mixed trends in the market highlight the regional variations in demand and supply dynamics, as well as the influence of external factors such as cotton prices and payment conditions. While Mumbai faces challenges, other regions like Tiruppur and Gujarat continue to show resilience. Overall, experts remain optimistic about the future of the cotton yarn market, forecasting stabilization and growth in the coming months, driven by an improving supply-demand balance.
