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Related Keywords: 40-count of cotton yarn, bales of cotton, China, cotton yarn, raising tariffs on import from the US, Shankar-6 variety of cotton, spinning sector, yarn maker, yarn prices

After raising tariffs on import from the US, China has contracted to import 500,000 bales (one bale = 170 kg) of cotton from India and the new orders are in addition to the regular ones. Against its consumption of 45 mn bales China produces nearly 32 million bales of cotton annually. India exported nearly a million bales to China last year. As a result, our overall cotton export is likely to rise 21 per cent to seven million bales for the cotton year ending this September, from 5.8 mn bales the previous year.

Related Keywords: cotton price, Fabric Maker, textile mill, yarn maker, Yarn Margin

Cotton prices that remained stable till February-March is seen gradually rising from Rs 41,500-42,000 per candy to Rs 44,000 per candy, wherein a candy is about 356 kg. The recent rise in cotton prices has put yarn makers under margin pressure as they are unable to raise prices at once, due to low demand.

According to cotton yarn makers, rising cotton prices has led to shrinking margins by around 5-7 percent in the last one month. Moreover, rise in cotton prices coupled with restricted demand has further resulted to increased pressure on margins.