Cotton spinners pin hopes on demand uptick to improve margins

The industry is also expected to see a bumper crop, which could bring down cotton prices to some extent

The cotton yarn industry is pinning its hopes on a fall in raw material (cotton) prices, after having had its margins squeezed in the past couple of quarters owing to dwindling yarn exports and excess spinning capacity.

According to cotton yarn spinners, margins were hit when the price of cotton went up, leading to lower demand from fabric and garment manufacturers, as well as dwindling yarn exports.

Spinners are hoping that margins will improve in the last quarter of the current fiscal year on the back of an uptick in demand and improved yarn exports. However, in the interim, the industry is