Foreign news on December 23, due to the increase in domestic and foreign cotton prices, the prices of major cotton yarn varieties in northern India have increased. Improved demand is also supporting market sentiment, with buyers starting to strike deals at current prices. There are signs that the government may take some steps to eliminate problems that may arise from the proposed consumption tax hike.
Combed 20-count and 30-count cotton yarn traded higher in Ludhiana.
Combed 30-count and 40-count cotton yarn prices have also increased in Delhi.
However, rising cotton prices have pushed up cotton yarn prices in Ludhiana, Delhi and Kolkata. Spinning mill owners quoted higher prices last week, but market prices remained stable. Over the past few days of this week, however, improved demand has led to higher prices. But a trader said higher production costs were putting pressure on spinning mill profits.
Meanwhile, the proposed excise duty hike remains a serious concern for fabric manufacturers, weighing on market sentiment. Fabric manufacturers have cut production due to the proposed increase in consumption tax from 5% to 12% from January 1 next year. But a market source in Ludhiana said the government may have some solutions to avoid disruption in textile activities. This has encouraged cotton yarn buying and cotton yarn prices have increased over the past few days. </p
