Cotton yarn market in South India is experiencing mixed trends with different regions showcasing contrasting results. While cotton yarn prices in Mumbai have dipped due to sluggish demand and stringent payment terms, the market has remained largely stable in Tiruppur, Tamil Nadu, a key cotton yarn production center, showcasing a distinct regional divergence. Industry players in Tiruppur are optimistic, anticipating price increases next month as cotton prices rise and payment conditions ease.

Simultaneously, in Gujarat, cotton prices are trending upward, fueled by robust demand from spinners and elevated cotton prices at Cotton Corporation of India (CCI) auctions. This increase in cotton prices is expected to ripple through the cotton yarn market across India. The rising cotton prices in Gujarat are anticipated to stimulate the spinning sector, subsequently boosting cotton yarn production.

These mixed market signals underscore the regional disparities in supply and demand, as well as the impact of external factors such as cotton prices and payment conditions. While Mumbai grapples with difficulties, Tiruppur and Gujarat demonstrate resilience. Overall, industry analysts are optimistic about the cotton yarn market's future, predicting stabilization and growth in the coming months, driven by a healthier balance between supply and demand