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Clothing manufacturers in India – Will they benefit from the Cotton Yarn price decrease?

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Pre-covid Cotton Yarn price per kilo in Tirupur in India was Rs. 220/-. At its peak, cotton yarn price was Rs. 435/- per kilo – an unprecedented 200% increase and has now been reduced Rs. 395/- per kilo in Tirupur, India.  Cotton mills saw the demands tumble, when the clothing manufacturers of India especially, wholesale clothing manufacturers of Tirupur decided not to purchase any more cotton yarn because of the clothing price increase. Since the demand for cotton yarn came down, prices were drastically revised by the cotton mills.

Clothing manufacturers in India, do not see this price decrease as an great benefit or an advantage – at least not yet, definitely they expect the Cotton yarn price to come in par with the prices of Pre-covid levels so that Indian manufactured clothing can become competitive once again in the global market and also reduced clothing prices in the local markets of India, will re-ignite the sales. Only when the cotton yarn price of India comes back to pre-covid levels, clothing manufacturers in India will consider the yarn price decrease as an benefit.

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