In the past week, Indian cotton yarn prices have begun to fall. Early supply shortages have led to rapid increases and a rapid reduction in demand. Domestic 30-count carded yarn fell by 1.9%, and 30-count ring-spun yarn fell by 1%.
At present, the price of cotton yarn in India is still 17-20% higher than four weeks ago. Such a huge increase in raw materials cannot be transmitted to downstream terminal consumption. Within four weeks, India’s 30-count knitting yarn has increased by 26%. Polyester yarn and polyester-cotton yarn have remained relatively stable for a week, but they have also increased by 15-17% in the past three weeks and by 25% in the past three months.
As yarn prices rise, Indian yarn mills’ profits have greatly increased, but yarn sales have also decreased significantly in the past week.
In terms of cotton, Indian ginners currently receive about 20,000 bales of new cotton from cotton farmers every day. Since the market price is higher than the MSP, cotton farmers basically sell all their cotton to private ginners. The price of seed cotton in some areas has reached 6,000 rupees/quintal, which is higher than the MSP (5,825 rupees/quintal). </p
