Reportedly, some traders and manufacturers of suitings have been defaulting on payments creating a payment crisis. Yarn suppliers too have become cautious in their dealings with weavers.

In the textile market, cotton yarn remained better in the coarse-medium counts. Some of the mills have announced higher rates for lower counts 2/6s to 2/20s cones. In the higher count, the market is standstill due low level of demand.

The polyester market expected a respite from the post-budget hike in prices following the roll-back of additional customs duty to 4 per cent. However, Reliance and Bombay Dyeing have decided to stick to their post-budget hike in prices despite sluggish offtake. Reliance reduced prices of only 155 denier weft texturised polyester yarnkeeping all others unchanged. Except Indo Rama, all other spinners have shown no intention to reduce prices of texturised yarn.

While Indo Rama Synthetics was contemplating a pricecut for polyester filament yarn (PFY), it has only reduced prices of polyester staple fibre (PSF). The company had raised PSF prices after the budget by Rs 3 to Rs 48 per kg which it rolled back by Rs 2 to Rs 46 per kg. The PFY prices which were raised by Rs 3 to Rs 60 per kg after the budget may not be reduced but might hike discounts offered. Art silk yarn prices ruled steady despite poor demand for ready goods because shortage of supply from spinners helped maintain the price-line.