TIRUPPUR: Mills expect yarn price to moderate as cotton has started to arrive in the domestic market.
P Shivakumar, superintendent of Mulanor cotton market, which is the largest in western Tamil Nadu, said 10,000 bags of cotton arrived in the market in the last one week.
"Cotton has started arriving in huge quantities from Oddanchatram and Palani (Dindigul), Thuraiyur (Tiruchy), Kodumudi (Erode), Kinathukadavu (Coimbatore). In the last four days, around 10,000 bags, each weighing 35-40 kg, have arrived. Last week, we received 13,500 bags. This is the biggest in the past few years for Mulanur cotton market. The season for cotton begins in May-July, but we are seeing more arrivals in April. I believe farmers started cultivation in October-November thanks to the rains. Last year, in the same period of May-July, cotton arrival was 7,000-8,000 bags per week."
Further, Shivakumar the prices have picked up. The MSP is Rs 60.25 per kilo, but most of the cotton is sold above Rs 80. Some farmers even sold it for Rs 133. Big mills have started procuring cotton for yarn production," he added.
P Sathivel, propreitor of Sri Pushpavaneswarar Enterprises of Erode, said, "Arrival of such huge volumes in April will augur well for the industry. Besides, the quality of cotton is also good. The market is large and on par with market in Warangal in Andhra Pradesh. We purchased a large quantity from Mulanor."
Special Advisor to Tamil Nadu Spinning Mills Association (TNSMA) Dr K Venkatachalam said, "After the Centre removed duty on cotton, the arrival has increased. The unginned cotton will be to converted into bales, after various processes and will be reflected in the cotton output of Tamil Nadu."
Currently, cotton yarn price in all categories (30s count, 40s count) is hovering over Rs 400 per kilogram. New prices of yarn is expected to be announced in May first week.