Struggling amidst skyrocketing price of cotton yarn, Indian textile and apparel industry can get some relief in next one or two months!
The Southern Indian Mills’ Association (SIMA) hopes cotton and yarn prices to stabilise post-Diwali and has also advised stakeholders to avoid panic buying.
Since the mills rush to buy good quality cotton in the beginning of the season, normally the prices will be higher.
The bulk arrival of cotton will begin from the end of November and the prices will rule at a lower level during December to February. The additional demands thrown open by the global and domestic markets in the aftermath of Covid second wave and 10 per cent import duty levied on cotton have added fuel to the situation in India.
Also Read: Cotton price soars to peak in last 11 cotton seasons! Indian Industry urges PM to intervene
It is important to mention here that the global cotton scenario has been facing an unprecedented challenge as the international price has been increasing exponentially since the beginning of September 2021.
The Indian cotton price (Sankar-6) that prevailed at Rs. 55,000/- per candy during beginning of September 2021 has now increased to Rs. 67,000/- per candy. The multinational cotton traders are taking full advantage of the current cotton scenario and speculating the prices.
Ravi Sam, Chairman, SIMA said that though the entire cotton textile value chain started performing extremely well in the recent years, the skyrocketing of cotton prices has created a panic situation in the country.
Commenting on the recent yarn price increase by few spinning mills manufacturing hosiery yarn in Tamil Nadu, SIMA Chairman said that these mills had not increased the yarn price for the past three months though the cotton price has increased over Rs. 12,000 per candy during the same period that enabled the knitted garment exporters to meet their commitments and also perform well.
Though these mills were hoping for reduction in cotton prices to maintain the same yarn price, the continuous spurt in cotton prices has forced these mills to increase the yarn price by around Rs. 50/- per kg, despite the clean cotton cost increasing by Rs. 60/- per kg.
Bharat Tex Special Report 2026 
