Foreign news on February 22, the sentiment of the cotton yarn market in southern India further slumped on Tuesday due to the increasing tensions between Russia and Ukraine. If tensions escalate further, export activity could be severely affected. As a result, buyers across the textile value chain are taking a cautious approach while making new purchases, leading to a fall in cotton yarn prices.
Other factors for the decline in cotton yarn prices include softening cotton prices and weak demand from downstream industries. Traders said the lack of fabric demand pointed to slow garment production activity.
Power loom owners are operating at limited capacity as demand for readymade garments remains very limited. In Bhiwandi and Ichalkaranji, hundreds of looms are running in a single shift instead of three shifts a day.
In the Mumbai market, yarn prices fell as demand weakened further.
Trade sources from Tirupur market also said that the quantity purchased from exporters and domestic manufacturers remains low.
Traders said cotton prices remained weak as cotton mills were adopting a wait-and-see policy as tensions between Russia and Ukraine escalated.
