Softening cotton prices revive sentiment for spinning mills in H2FY20

Consumption seen rising 5% to 28.8 mn bales this year, compared to 27.4 mn bales last year

Spinning mills in the country are on the cusp of a revival in the second half of the current financial year due to a sharp decline in raw material cotton prices as well as stable realisations from yarns.

Cotton prices have declined by more than 8 per cent since April with the benchmark MCX variety ginned cotton trading at Rs 18,650 a bale (170 kg) on Saturday against Rs 22,600 a bale in the first week of April. By contrast, however, cotton yarn prices remained stable at Rs 250 a kg of fair trade combed of 42 count variety.

“Cotton prices are