Seasonal shifts may help boost the prices of cotton yarn in south India. Production of summer clothing is likely to pick up in a few weeks. The industry is trying to adjust the production at present prices.

Cotton yarn prices have already gained in Mumbai as demand improved from the downstream industry. Buying increased in Tirupur too. Market sentiments improved in Tirupur despite the festival of Pongal during which production and trade are limited.

The weaving industry is buying yarn as it needs to plan for the summer season and cotton yarn prices are likely to pick up after the festival.Cotton yarn prices were up byRs 4 per kg in Mumbai as demand rose. Demand improved because the production of summer clothing is set to pick up in the next two or three weeks.

The industry is trying to adjust present cotton yarn prices. The consumer industry and traders are buying cotton yarn, and sentiments have also improved in the fabrics trade.In Gujarat, cotton prices went down by Rs500. Ginners are still facing a disparity of Rs3,000 to Rs4,000 per candy. Weaker demand from spinning mills and multinational corporates caused the decline in cotton prices. Farmers are still reluctant to sell seed cotton. However, optimism in the yarn trade could be positive for the market.