Business Standard

Firm cotton prices to keep yarn-spinning stocks in check: Analysts

Analysts expect that the inflated cotton prices will continue to haunt small-sized yarn spinners during the first half of FY23 (H1-FY23). However, a good monsoon season can paint a different story

Cotton
Premium

Despite the government's concentrated efforts, analysts remain speculative of margin pressure looming over the textile industry as companies hesitate to pass on complete price hikes to consumers.

Lovisha Darad New Delhi
The double whammy of increased freight expenses and higher inflation has seen cotton prices rising over 30 per cent to Rs 46,700 per bale from Rs 35,829 in calendar year 2022 (CY22). This, according to analysts, is slowly eating into the margin and volume growth of the home-grown textile industry. Moreover, with rising interest rates skewing purchasing power of consumers, analysts expect muted demand for their products in the near-term.

India is the second-largest producer of cotton after China with 25 per cent share of overall production. In the past few months, the global demand has shifted away from China

What you get on BS Premium?

  • Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
  • Pick your 5 favourite companies, get a daily email with all news updates on them.
  • Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
  • Preferential invites to Business Standard events.
  • Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.
VIEW ALL FAQs

Need More Information - write to us at assist@bsmail.in