Spinning mills' margins to recover in Q3 on bumper cotton output

Profit margins of most spinning mills remained under pressure in Q1FY18

After a subdued Q1, cotton mills are likely to recover in terms of their profit margin in Q3 of the current year with increased availability of fibre from the new harvest season, which starts in October.
 
The profit margins of most spinning mills remained under pressure in the April-June quarter 2017. This was followed by weak global sentiment, which hampered India's cotton yarn exports and subdued demand from local markets due to traders' destocking ahead of GST (goods and services tax) implementation effective July 1.
 
"The level of global cotton production in CY18 is estimated to exceed consumption, after