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SIMA forecasts recovery of yarn sector; lower cotton prices

Press Trust of India  |  Coimbatore 

The yarn sector, affected by high cotton prices in the past six months, might become normal within a fortnight with demand picking up in major domestic markets owing to coming festival, textile industry body Southern Mills' Association (SIMA) said today.

Also forecasting stable and lower cotton prices, it said the country would also have competitive advantage in the international market also.

SIMA Chairman P Nataraj said in a statement here that the demand for yarn in the markets especially Bhiwandi, Ichalkaranji and had picked up with the requirement for fabric going up in view of the festival season.

In addition, the unsold yarn stock with the spinning mills was also low now.

The SIMA chief also said the global cotton position would be very comfortable during 2017-18 due to increase in area under cultivation of the crop area by around 11 per cent.

was likely to get a record crop with 15 per cent increase in area and favourable monsoon and weather, he said.

The cotton price would also be comparatively lower throughout the season and therefore, the domestic demand would pick up, he said.

Indian textiles and clothing industry had been passing through continuous recession during the last three years mainly due to poor off-take in the global market, he noted.

Nataraj attributed the reason to the Free Trade Agreement and Preferential Trade Agreement competitive advantage gained by the competing nations like Vietnam, Bangladesh and high tariff rates imposed on Indian textiles and clothing products in major textile makers such as the European Union, the US, Canada and China.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Sun, September 17 2017. 19:13 IST