Cotton yarn prices in North India have declined by about 5-10 percent recently. This is in line with the drastic fall in cotton price in the domestic and international markets due to the fear of spread of Omicron variant of COVID-19. The easing of cotton yarn prices has encouraged demand from downstream industries of textile sector.
When discovery of the Omicron variant was announced by the South African scientists in the last week of November, the initial panic dampened the demand for cotton and market sentiments in general. There was a sense of worry that the new variant would hamper global economic recovery and can lower the demand in the textile sector. As a result of this probable lower demand for cotton, New York cotton witnessed a sharp fall. ICE March Cotton settled at US cent 106.72 a pound recently, compared to price of above US cent 122 before the Omicron variant.
In India, prices of the benchmark Shankar-6 cotton variety declined to Rs. 65,000-65,600 per candy of 356 kg. In the North Indian State of Punjab, the price of J-34 (RG 37-28.5 mm) cotton was quoted at Rs. 61,700-61,950 per candy, according to market analysis tool TexPro. In Haryana, cotton of the same variety was sold at a lower price of Rs. 60,446-60,732 per candy, according to a source.
Cotton yarn prices in India were under pressure due to declining trend in cotton prices in the international and domestic markets. Suresh Gupta, a Delhi-based trader and patron of Delhi Cotton Yarn Merchants Association said, “During last 15 days, cotton yarn prices have fallen by about 5-10 percent in Delhi market. Cotton yarn of 30 counts (combed) is being sold at Rs. 325-345 per kg, and 40 count combed yarn at Rs. 360-380 per kg in Delhi market. Cotton yarn of 30 counts (carded) was quoted at Rs. 295-315 per kg, and 40 count carded yarn at Rs. 330-350 per kg.
In Ludhiana, a knitwear hub in north India, 20 count combed yarn is being sold at Rs. 320-330 per kg, 25 count combed yarn at Rs. 325-335 per kg, 30 count combed yarn at Rs. 330-340 per kg, and 30 count carded yarn is being sold at Rs. 290-300 per kg. Ludhiana-based trader Surinder Kumar Jain says that, there has been a downward trend in the price of cotton yarn. The prices softened by Rs. 2-3 per kg. Traders say that the demand for cotton yarn has improved due to the fall in the price of cotton, and these days the demand is stronger in most of the markets of North India.
