Cotton Yarn Prices Drop by Rs 10/kg, Boosting Confidence in Rs 40,000 Crore Export Target
2024-11-05 11:39:04
The Rs 40,000 Crore Export Target Gains Confidence as Cotton Yarn Prices Drop by Rs 10/kg
The price of cotton yarn used in knitwear production decreased by Rs 10 per kilogram on Monday, bringing optimism among exporters as New Year and Christmas orders start pouring in. Exporters see this price reduction as a boost for both domestic production and exports, aligning with their goal of achieving the Rs 40,000 crore export target.
On Monday, spinning mills announced a price cut of Rs 10 per kg for all counts of cotton yarn used in knitwear. For instance, 20s kh (18.5 count) yarn dropped from Rs 220 to Rs 210 per kg, while 40s kh (38.5 count) decreased from Rs 248 to Rs 238. This price adjustment has been well-received by knitwear manufacturers in Tiruppur.
KM Subramanian, president of the Tiruppur Exporters Association, stated, “The reduction in cotton yarn prices will aid growth in domestic production and exports, especially as cotton prices have settled at Rs 56,000 per candy. This price drop will support our efforts to achieve the Rs 40,000 crore export target for this year.”
MP Muthurathinam, president of the Tiruppur Exporters and Manufacturers Association, highlighted that orders for New Year and Christmas are already coming in, with inquiries from Bangladesh as well. "Bangladesh had been hesitant due to our higher prices, but with this reduction, we can now capture more of these orders," he explained.
Reflecting on recent market trends, he added, “Domestic orders before Deepavali were promising, but sales did not meet expectations afterward. We now hope that Christmas and New Year export orders will improve the situation, and this yarn price reduction will be a key factor. Yarn prices have held steady this year without any hikes.”
Industry sources revealed that yarn prices have seen three reductions this year: a Rs 20/kg drop in January, another Rs 20/kg decrease in June, and now this recent Rs 10/kg cut in October.
