Since 2021, cotton prices in India have increased by more than 13%, and the increase in February was close to 10%. Driven by rising cotton prices and yarn demand at home and abroad, cotton yarn prices have also risen sharply.
According to Indian exporters, India’s 30-count combed yarn has increased by 30-40% in recent weeks, from 245 rupees/kg in January to 274 rupees/kg. At present, the demand for cotton yarn in India is good, and some yarn mills have sold two months of production. If you want cotton yarn now, you can only wait until the end of April or May. If you are lucky, you may be able to buy it in stock from manufacturers that still have inventory in March.
At present, Indian textile mills are basically operating at full capacity. The demand for yarn has increased since December 2020, forcing the spinning mills to operate at full capacity. However, yarn prices have also risen sharply. The South India Textile Mills Association stated that Indian yarn has increased less than cotton, and yarn prices have also fallen in the past few days. 40-count combed yarn has dropped from 300 rupees/kg to 275-285 rupees/kg.
The Indian Textile Exporters Association stated that in addition to panic purchases triggered by increased domestic demand, export demand has also pushed up cotton yarn prices, and yarn prices are expected to increase again starting in March. At present, China’s purchase of Indian yarn is very large, 15-20% more than before. Bangladesh, Peru and Brazil are also importing Indian cotton yarn, and the current export demand ranges from 16-count to 60-count yarn. For small and medium-sized yarn mills, because they have previously promised lower prices, even a 5-cent price increase will force buyers to switch to cotton yarn from other origins. </p
