The sharp rise in cotton yarn prices in the last few weeks is because of dried-up inventories as supplies have failed to match demand and spinning mills resumed operations late across the country.
Cotton fibre price has not risen significantly but cotton yarn has because of high domestic and export demand. Huge orders are coming in from Bangladesh and Vietnam.
Labour was limited during lockdown-induced factory closures that resulted in limited produce. When demand rose later, traders and agents started selling to those who were ready to pay higher prices, and therefore, prices witnessed a significant rise in the last six months.
