Rising cotton price to hit margins of textile companies

Rising cotton prices are set to hit profit margins of textile and apparel players due to their inability to pass on the high production cost on to consumers as seasonal demand is weak.

Cotton, the key raw material for textile and apparel production, has become costlier by 6 per cent in March alone due to lower output last year. Thus, the benchmark variety of cotton jumped to Rs 12,373 a quintal on Friday from Rs 11,698 a quintal in the beginning of the month. Experts believe the natural fibre will continue to move northward. Cotton yarn prices have also jumped