Cotton yarn prices in Mumbai drop while Tiruppur remains stable

Reports indicate a difference in the cotton yarn market between Mumbai and Tiruppur, with Mumbai experiencing a slowdown while Tiruppur remains relatively stable.

The Mumbai cotton yarn market is facing sluggish demand, leading to a decline in prices, particularly for coarse counts. Consumers and traders are avoiding stocking up on yarn. They are buying only for immediate requirements. Buyers are anticipating the new cotton crop to enter the market, which is expected to put pressure on prices. The availability of duty-free cotton imports is also contributing to the downward pressure on prices. In response to the weak demand and tight margins, mills in Mumbai have reduced their production. The downstream industry is facing a payment crisis, which has also hurt the cash flow in the yarn market.

On the other hand, cotton yarn prices in Tiruppur have largely held steady as the region’s focus on sustainable practices, such as zero liquid discharge and renewable energy, has made it an attractive sourcing destination for global buyers, especially from the US and Europe. Global buyers are increasingly shifting their sourcing from other countries to India, which benefits hubs like Tiruppur that handle bulk orders.

Prices in the Gujarat cotton yarn market have also declined with traders under pressure to complete deliveries.