Cotton Yarn Exports

Increased capacity utilisation, softening cotton prices set to help sector: Analysts

High cotton prices, the Russia-Ukraine war and poor demand from the apparel industry have hit the spinning mills hard

Higher output could help cool the rally in global and local cotton prices, which is hurting Asian apparel makers

The Noida Apparel Export Cluster (NAEC) on Sunday sought immediate intervention of the government in containing high cost of cotton yarn and fabrics, saying rising prices are impacting exporters

The demand of yarn, fabric and apparels is set to remain muted throughout first half of the financial year 2020-21

The report further explained that the dynamics of the spread between international and domestic prices of cotton also affects profitability

With cotton yarn export dropping for three years in a row, industry bodies have demanded export incentives and trade policy interventions.They've given a detailed analysis to the commerce and industry ministry, showing the $3.5 billion export segment is shrinking. The segment makes up more than a tenth of India's total textile export and is one of the few segments there in which the country had historically enjoyed an advantage until recently. In 2016-17, the export of cotton yarn fell 7.7 per cent. Apart from trade reasons, the spectre of a five per cent Goods and Services Tax on both yarn and fabric have hit the hitherto untaxed industry hard. A recent report from ratings agency ICRA says the rupee's rise over the past year, with high raw material prices in the past six to nine months, had disadvantaged the industry. Also, with domestic demand not growing, investment into spinning mills have stopped, pushing up manufacturing prices, exporters claim.As a result, industry bodies have

China, Bangladesh more inclined towards cheaper imports from Vietnam