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Related Keywords: alternative markets for exports, CCI, China major importer, CITI, cut in production, decline in cotton yarn exports, garment sector, Indian spinning mills, looking to domestic demand, lower capacity utilization, relief from oversupply situation

Indian spinning mills are looking to domestic demand from the garments sector for relief from oversupply situation caused due to decline in cotton yarn exports to China. China has been a major importer of cotton yarn from India with a share of about 46% of Indian exports of the commodity, but that has declined substantially – to an estimated 4% in the first three quarters of FY2015 – undermining the health of Indian spinning mills.

Related Keywords: affected exports, cut in production, depreciation of Euro, eurozone, finished fabrics, in crisis, Pakistan home textiles, plummet in international cotton prices, shut shop, Textile Industry

Globally, depreciation of the euro and the crisis in the eurozone, as well as plummet in international cotton prices has adversely affected export of home textiles and finished fabrics put a majority of home textile producers from Faisalabad in trouble. This is the second time in seven years that home textiles manufacturers from Faisalabad are in the midst of a crisis.

As overseas shipments of most home textiles has continued to slump over the last one year, a majority of home textiles producers are compelled to significantly cut their production and some to shut their shop.