Cotton yarn pricing across Gujarat’s spinning and denim corridor has found a stable footing heading into November. Following the Central Government’s notification extending the 11% customs duty exemption on raw cotton imports until 31 December 2026, spinning mills across Ahmedabad, Kadi, Narol, and Surendranagar have issued steady price cards for November yarn bookings, holding rates unchanged from late October levels.
Import Buffer Offsets Domestic Crop Worries
The domestic cotton market had faced upward pressure in mid-October when the Cotton Association of India (CAI) projected the 2026–27 national harvest below 29 million bales, pushing raw Shankar-6 seed cotton (kapas) in Gujarat mandis past ₹9,100 per quintal. Without the duty waiver extension, mills faced paying an 11% import tariff starting 1 November, which would have forced spinning mills to hike yarn prices by ₹8 to ₹12 per kg.
By extending duty-free imports for an additional two months, composite mills can continue blending imported contamination-free cotton with domestic arrivals without absorbing tariff markups. Current benchmark rates quoted by Ahmedabad spinning mills are as follows:
- 30s Combed Cotton Hosiery Yarn: Steady at ₹268–₹275 per kg.
- 40s Combed Cotton Weaving Yarn: Range-bound at ₹290–₹302 per kg.
- 20s Carded Weft Yarn (Denim Grade): Quoted firm at ₹225–₹232 per kg.
- Compact Cotton Yarn (Fine Counts): Holding at ₹330–₹345 per kg, supported by export inquiries from Bangladesh and Sri Lanka.
Denim & Garment Makers Secure Cost Certainty
For composite denim manufacturers and kurti converters in Maskati Cloth Market and New Cloth Market, rate rollover provides critical costing stability. Garment brands planning spring and summer collections can issue forward contracts without fear of unexpected yarn spikes during the upcoming holiday trading lull.
Trade analysts note that once Saurashtra mandi arrivals dry out and moisture levels drop below 9% in mid-November, domestic lint prices will align naturally with international parity, maintaining balanced yarn margins into the new year.