Cotton yarn prices have increased over 20 per cent in the past three months in India. Prices of superior quality yarns 40 CWC and 60 CWC have increased to Rs 405 a kg from Rs 330 and Rs 500 from Rs 415, respectively, in the past three months. Yarn prices normally keep pace with the raw material i.e. cotton. Yarn prices move in tandem with cotton and demand in the apparel sector. The demand for garments has seen a northward trend after the opening up of Covid related restrictions Cotton prices have sky rocketed and have not come down even with the onset of the new cotton season. Domestic prices have galloped in line with the global trend due to lower production and supplies. For instance 30 counts CCH yarn, used by hosiery units, is currently quoted at Rs 340 to Rs 345 a kg. When the Covid pandemic broke out in the country in March last year, the yarn was quoted at Rs 165 to Rs 170 a kg.
While Shankar-6 cotton prices have increased 80 per cent since October last year, 40s count hosiery yarn rates have gone up only by 58 per cent during the period. However the policy is to let cotton growers enjoy the current good prices they are getting.