Cotton and yarn prices decline: SIMA

Prices of cotton and yarn have declined in the recent weeks, according to Southern India Mills’ Association (SIMA).

SIMA chairman Ravi Sam and its deputy chairman S.K. Sundararaman told presspersons here on Friday that yarn is selling at ₹20 to ₹25 a kg discount in Tiruppur.

Yet the offtake is low. The mills are able to sell just 50 % of the yarn produced. Most of the mills have reduced production and capacity utilisation has dropped.

Cotton prices have also fallen significantly. The spot price quoted for Shankar-6 variety of cotton is ₹ 91,000 (approximately) on Friday compared to almost ₹1 lakh a candy last month.

With the Union Government permitting duty free imports till September 30 cotton prices started declining. The mills have sought extension of the exemption till December 31.

Even if the mills book the cotton now, the consignment will land in India only after a couple of months. The government should permit duty free landing of cotton till December 31. The Union Textile Ministry has recommended this to the government, they added.

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Printable version | Jun 17, 2022 6:50:45 pm |