
The downstream business in South India continued to see weak demand for cotton yarn. In the Tiruppur market, cotton yarn prices decreased by Rs. 2-4 per kilogramme, while they were stable in Mumbai with the exception of 40-41 carded warp yarn, which was under pressure from weak demand. Traders claimed that there was no sign that the current slow demand will end. The number of garment export orders was insufficient to sustain the market.
A trader was quoted as saying “Garment export orders were insignificant to support cotton yarn prices. Although, mills have rolled over yarn prices for this month, but discounts and other types of lower offerings were common to lure buyers. Mills and stockists were feeling pressure to sell their stocks.”
The pricing for the majority of counts and kinds of cotton yarn were consistent in Mumbai. Because of the payment crisis, the market was under pressure from a weak demand.
“Downstream industry was feeling payment crisis. There was slower demand in fabric market due to silence of garment units which caused the payment crisis. The problem dried up cash flow in yarn market also,” said a trader.






