Spinners extend Diwali holidays in the hopes that cotton prices will fall

In anticipation of further drops in cotton prices and weak yarn demand, some spinning factories, notably in south India, are observing prolonged holidays for Diwali. Some millers, led by the Tamilnadu Spinners Association (TASMA), have urged Finance Minister Nirmala Sitharaman to prolong the window for duty-free import of cotton until March 31 because the demand for yarn has not yet increased.

“Southern mills are taking longer vacations since there is no market for yarn. However, international businesses are paying cheap prices for cotton that will be supplied in December and January. However, farmers are seeking higher prices. Anand Popat, a merchant in cotton, yarn, and cotton waste with a base in Rajkot, claimed that it had caused some form of stoppage. “After Diwali, no mills (in some areas of Tamil Nadu) have reopened. According to K Venkatachalam, Chief Advisor, TASMA, “Cotton arrivals have not been seen since October 22 and pricing trends are not available over the past week.

The CEO of SVP Group, however, who owns textile businesses in Rajasthan and Tamil Nadu, OP Gulia, claimed that all mills that had previously closed have extended the break.“There is also a problem of availability of workers due to continued holidays till Nag Panchami. However, all better-placed mills which are open and running have not closed. They have rather reinstated the capacity,” he said. Cotton arrivals at various agricultural produce marketing committee (APMC) yards between October 19 and 26 were 45,816.59 tonnes, down from 67,127 tonnes between October 13 and 18 according to Agmarknet, a division of the Ministry of Agriculture.

Farmers are hesitant to sell cotton at a low price, which is why there is a slowdown in cotton arrival. The peak price (seen in May of this year) has dropped by 10–15% during the past 30 days, according to Ronak Chiripal, CEO of Nandan Terry. The Christmas spirit has caused a week-long decline in cotton arrivals. The store is empty of shoppers. Once more, this will pick up quickly. Price trends will follow suit, too,” Gulia said. For cotton that can be provided between December and January, he stated, “Multinational corporations are offering between 58,000 and 59,000 a candy.” Prices for delivery in December are $7.73 per pound (or $50,413 for a sweet) on the ICE, New York.

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