After the lockdown, the price of cotton thread went up. For example, the price of cotton yarn in its thirties has risen from about 195 pounds / kg in August 2020 to about 240 pounds / kg today. One of the reasons is that the price of cotton in the new season has risen significantly. Prices have risen from £ 38,500 per candy in November 2020 to around £ 45,000 per candy today.
Second, the spinning sector started a little later, with low utilization after the blockade. “Although it began to increase after September, it still faces a labor shortage in states like Tamil Nadu,” ITF convener Pravda Modalan told Fiber2Fashion.
Dhamodharan describes the demand situation as follows. “Mainly due to stagnant demand for finished products, there is good demand from all segments of the value chain. Manufacturers can afford to buy additional inventories.”
Dhamodharan calls rising demand and rising prices the long-awaited green shoot. “Our agricultural and manufacturing economies have a great need for a healthy and economically viable spinning sector,” he adds.
However, the increase in demand is not unique to India. “The prices of many products are rising in some sectors of the world. The prices of textiles such as cotton, polyester and viscose in the raw material stage are also rising. Naturally, the prices of Indian yarns and textiles. It’s also reflected in, too, “says Prabhu Dhamodharan.
Despite rising prices, Indian cotton and yarn are still cheap compared to other competitors. “So we need to communicate with buyers about reality and insist on better prices. In addition, our competitors also need to work on raw material costs that are even higher than ours. In fact, up to the retail stage. We need to absorb the rise in value chain prices, but that will happen in stages, “Prab Damodalan said.
As a long-term strategy, he added to take advantage of post-COVID opportunities in finished product exports as more companies move towards integration and “make this cyclical demand structural”. I suggest that you should focus on value.
Fiber2Fashion News Desk (RKS)
Over the last four to five years, India’s standalone spinning segment has performed significantly poorly compared to all other segments of the textile value chain. However, according to India’s Texpreneurs Federation (ITF), demand for yarn is currently high due to stagnant demand for finished products, and there are some long-awaited green shoots in this segment.
You can now see green shoots on rotating segments: ITF
Source link You can now see green shoots on rotating segments: ITF