The political turmoil in Bangladesh may hit yarn and fabric exports to the region; India’s textile industry could also look at opportunities in the global apparel trade
Yarn spinners are in a rut with low realisations and spiralling costs squeezing profit margins
Even revenues of domestic readymade garment (RMG) makers are likely to improve in FY2024 and FY2025 compared to the last two years
Even as cotton prices trend lower from the all-time highs, spinning mills are hopeful that rising demand for yarn will give a leg-up to operating profitability
July data showed the global cotton textile trade has been coming off from its highs. The export of cotton yarn, fabrics and handlooms products from India during the month, according to industry sources, declined by about 28 per cent year-on-year
Narendra Goenka said that the prices have jumped by about 125-130 per cent during the last 18 months and one of the reasons for that would be "unchecked" exports of cotton and cotton yarn.
Speaking to CNBC-TV18 Dinesh Nolkha Managing Director of Nitin Spinners says the total revenue generated is from its cotton yarn and the knitted products 70 percent of which are exported. Seeing a value addition in domestic market the company is looking to increase its presence to 45 percent from the current 30 percent.
Sectors like cotton yarn have been totally ignored especially at a time when exports of these products have declined sharply and face high logistic cost when exported to markets like Latin America.
CRISIL Research has come out with its report on profitability of textile companies. According to the research firm expects profitability of cotton yarn and man-made fibre (MMF) players to improve over the next few quarters on account of decline in input costs and moderate demand growth.
The government today said exporters will not be fined if the weight of cotton yarn they ship is lower by up to 5% than committed in their contracts.
Over 125 textile mills providing employment to 41,118 people have been shut down in the past three years on account of restrictions on cotton yarn exports and piling up of huge inventories, Parliament was informed today.
The Government's initiative to cap export of cotton yarn to bring down its domestic prices has resulted in a marginal increase in the export of apparels to USD 2,438 million in Q3 FY 11 as compared to USD 2,398 million in the year-ago period.