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Related Keywords: boost yarn production, cheaper rates, chinese market, cotton, farm subsidides, increase spending, Indian spinning mill

Indian mills catering to the Chinese market likely to get hit with china taking decision to increase spending on farm subsidies by 10 percent to boost yarn production as cotton will be available to Chinese spinning mills at a cheaper rate.

Related Keywords: cotton price, cotton yarn, Indian spinning mill, Indian Textile Indusrtry

The surge in the demand for cotton yarn in the export market and domestic apparel and home furnishing sector, has renewed vigour and confidence of Indian spinning mills this year. On the back of higher exports, the spinners' profitability is increasing while many of them are raising headcounts to full fill increased order flow.

The good monsoon and a better cotton crop may help keeping the price of cotton viable for the industry in the next few months, thus increasing the margins of mills.