Slow demand hits south India yarn, demand revival expected post-Diwali

Cotton yarn prices in south India remained stable as sluggish demand persisted in Mumbai and Tiruppur markets. Traders expect improved cash flow and stronger downstream demand after Diwali to boost buying activity. Mills continue to face pressure from weak fabric demand, while Gujarat's steady cotton prices and upcoming CCI procurement at MSP are likely to support overall market sentiment. -

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October 10, 2025 In Mumbai, cotton yarn prices remained unchanged, while demand from the downstream industry was also limited. Power looms and auto looms are struggling amid weak fabric demand. A trader from the Mumbai market told Fibre*Fashion, “Spinning mills have witnessed poor demand from loom sectors. Several power looms have suspended fabric production due to insufficient demand. However, once cash flow improves, market sentiment will turn positive and buyers will begin stocking cotton yarn.”

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