Cotton yarn prices in South India fall as demand drops

Cotton yarn prices in South India have declined due to sluggish demand, although export orders are expected to rise in the coming months. In Tiruppur, cotton yarn prices have eased by Rs 5-8 per kg, while rates in Mumbai have remained steady. Despite the weak demand, spinning mills are resisting official rate cuts but are offering discounts to attract buyers and secure orders.

Traders are optimistic about a potential increase in export orders within the next two to three months. This expectation is based on the declining prices of imported cotton, which is lowering production costs for Indian mills and making their products more competitive in the international market.