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

Share: 
      Newsletter

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

Recommended by Apparel Resources

Fair Wear Foundation and Better Work collaborate for garment workers

Collaboration between Fair Wear Foundation (FWF) and ILO Better Work, signed on May 18, will come into effect from June 1 to offer...

SPGPrints bags ‘Best Textile Solution’ award for Javelin Printer

Achieving yet another milestone, SPGPrints has won the European Digital Press Association (EDP) Award for ‘Best Textile Solution’ in the Print and Finishing Category for its Javelin digital textile printer....

Akosombo Textiles bags Textiles Manufacturing Company of the Year Award

Akosombo Textiles Limited (ATL) has been named Textiles Manufacturing Company of the Year (2016) at Ghana Manufacturing Awards (GMA). The criteria for the...

Tintex (Portugal) opts for Brückner line

Portugal-based Tintex Textiles has reportedly opted for stenter line of the leading system supplier and stenter producer Brückner to develop unique solution for...

Indian Textiles Ministry claims Rs. 3,000 crore investment in garment industry

On the occasion of completing three years of Modi Government, Smriti Irani, Union Minister of Textiles held first ever official meet of the Ministry and media in New Delhi. In an...

1,500 textile workers in Ghana may face job-loss

As a result of unsatisfactory performance of the country’s textile industry, Ghana is planning to lay-off textile workers. The Ghana Federation of Labour...

Grasim’s VSF business delivers stellar performance

India-based Grasim Industries has posted results for the fourth quarter ended March 31, 2017. During the quarter under review, Grasim reported a consolidated...

Sutlej Textiles gets approval to raise funds up to Rs. 500 crore

Sutlej Textiles and Industries Ltd. (STIL), an ISO 9001:2008 certified company and  one of the largest integrated textile manufacturing companies in India, has...

Construction of Vietnam’s Nha Be garment factory gets underway

Construction of the new garment factory of Nha Be Textile Garment Company (NBC) commenced in the Mekong Delta Province of Soc Trang on...

Raymond launches India’s maiden khadi label

India-based textile and apparel conglomerate Raymond has launched Khadi label – ‘Khadi by Raymond’. “Raymond is proud to have Khadi – the fabric...