Indian textile mills and exporters hit hard due to fall in global yarn prices, yaun correction as well as glut in the international market. Yarn prices have declined around 30 percent this year compared with the previous year.
The price of yarn is down by Rs 10 on a month-on-month basis and by Rs 30 a kg compared with the corresponding period last year, M Anantha Reddy, general secretary of the Telangana Spinning and Textile Mills Association.
The price of fine yarn (above 30 counts) is now Rs 156 against Rs 176 last year. The two-count yarn is now around Rs 136. The price reduction has eroded the margins for the industry and affected their turnovers.
Also the recent devaluation of the yuan against the dollar by China has also affected the spinning and textile industry in India as about 40-50 percent of the textile production is exported and China is one of the big markets.
But China is striving to push exports by making the pricing of its products attractive in the global markets. With more stocks in hand here, the prices will fall drastically in the absence of corrective measures, said Reddy.
A few players are looking for restructuring of their debt. Stocks of finished goods at mills have increased as buyers refused to lift the stock because of decline in prices, he added.
The textile industry sought three percent incentive for yarn, five percent for fabric and seven percent for garments, made-ups and others finished textile goods under the Focus Market Scheme.
The textile industry is the largest manufacturing sector employing about 105 million people
Lenzing Nonwovens has expanded its LENZING Lyocell Dry fiber range with two new cellulosic fibers: a fine dry fiber and…
Digital identification expert Avery Dennison has launched a new platform designed to increase transparency across brand and manufacturing supply chains.
Traceability platform provider Aware has announced a collaboration with Baichuan Resources Recycling, a leader in recycled polyester, yarn, and fabric…
Indorama Ventures has teamed up with Suntory, Iwatani, and others to introduce the first commercial-scale bio-PET bottle, made from certified…
Milliken & Company has introduced Milliken Assure, first flame-resistant moisture barrier for firefighter turnout gear that is free from PFAS…
Paradise Textiles has collaborated with Kintra Fibers, a leader in bio-based fibers, to produce the first garment made from Kintra’s…