Selvaraju, secretary general of the Southern India Mills’ Association, reports that hosiery yarn, which sold for $381 per kg in October of last year, is now selling for $331 per kg, and the price for warp variety, which was $303 per kg in October, is now $270 per kg. Even only a few days ago, the weaving units were performing nicely. The last 1.5 months, however, saw a decline in demand. The demand for yarn remains muted even though the spinning mills are operating at close to 90% of their capacity and cotton prices are consistent.
Indian cotton prices were reportedly ranging between 61,000 and 62,000 rupees per candy, according to Nishant Asher, secretary of the Indian Cotton Federation. Its price levels were higher than current global prices. Due to this, Indian yarn was no longer competitive on the global market, and consumers began to favour nations like Vietnam.
