Low cotton demand to impact spinners | Textile News India
Home » News » Textile Mills News » Low Cotton Demand To Impact Spinners

Low cotton demand to impact spinners


READ MORE ON CottonICRATextile News India

Spinning Mill

Image Courtesy: fashionatingworld.com

As per ICRA Limited, an Indian independent and professional investment information and credit rating agency, cotton yarn export quantity has been recorded at 23 per cent lower year on year during first seven months of financial year 2017. Due to the improved domestic mill consumption, China has also reduced 20 per cent of its imports which has adversely impacted yarn exports, falling 54 per cent year on year during the review period.

Jayanta Roy, Senior Vice President and Group Head, ICRA reportedly said that the fall in export demand for cotton yarn is a major challenge for spinners as the industry has been exporting a third of yarn produced for the last four years.

With consistent fall in demand, spinners have to cut down on capacity utilization, and apart from lower profits, the high cotton prices have translated into higher working capital requirements, leading to higher borrowings and weaker credit matrix.

Also ReadCotton prices worry Indian spinners

Though cotton prices have fallen since the beginning of the harvest season, it is still 17 per cent higher compared to the corresponding period last year. Moreover, cotton arrivals have constantly gone down since the demonetisation of high-value currency in the country on 8th November last year.


Have some news? Let us know on news@apparelresources.com

Comments are closed.

Recommended by Apparel Resources

GST: Knitwear hub Tirupur Stages protest

Tirupur, the knitwear hub of India, is the latest to stage protests against the imposition of 18 per cent Goods and Services Tax...

Khadi goes designer as KVIC signs deals with apparel firms

Khadi and Village Industries Commission (KVIC), a statutory body formed by the Government of India, has inked deal with various apparel companies to...

Opposition highlights textile industry’s concerns over GST in Rajya Sabha

The Opposition parties raised their voice against the impact of Goods and Services Tax (GST) on textile industry during the Zero Hour in Rajya Sabha on Thursday. They highlighted the...

India’s Bee. K. Bee. Prints to explore digital printing

Based in Faridabad, Bee. K. Bee. Prints is one of the best process...

Israel explores business opportunities in Indian textile industry

The fabrics made in Surat, the biggest man-made fabric (MMF) destination in India, may soon leave a trail of its footprints in Israel....

Warangal Textile Park gets Environmental Clearance from Centre

The Kakatiya Mega Textile Park in Warangal, Telangana (India), which has been under the first phase of development since past one year, has...

Smriti Irani gets additional charge of I&B Ministry

Additional charge of Ministry of Information and Broadcasting (I&B) has been given to Smriti Irani, who is also the Textiles Minister of India. So is it a bad news for...

Ethiopia’s Ambassador Garment to Double Production Capacity

Ambassador Garment and Trading Plc, one of the leading suit manufacturers in Ethiopia, has announced its plans of doubling its garment production capacity...

Textile traders condole Amarnath attack victims; call off GST protest

Terror attack anywhere in the country has always brought anger and sorrow among citizens. The recent terror attack in Jammu & Kashmir’s Anantnag...

Cambodia’s First Garment Manufacturing Training Institute Opens Door

A garment manufacturing training institute, set up by the Garment Manufacturers Association in Cambodia (GMAC), has opened doors for garment industry workers. The...