India'S Yarn Demand Is Beginning To Recover.

In the next few weeks, yarn demand in India may begin to recover, and power looms will fulfill sales orders during holidays. This will provide a breathing space for the ailing spinning industry.

The production of power looms is expected to increase in the second week of June.

In recent months, power looms have reduced production due to excessive cotton prices.

Cotton prices fell after a record high of 63000 rupees / candy in February and are now stable at 45000 rupees / candy.

Bharat Chhajer, chairman of the India development and Export Promotion Committee of the power loom, said that due to price fluctuations, the production of power looms has been halved in recent months, and price fluctuations have led to many textile factories stopping purchasing yarn.

The factory buys yarn at a high price, but the cloth is sold at a lower price.

Exports are slack.

Eventually, serious problems were created for spinning factories.

According to the insiders, last quarter, the government restricted the export of cotton yarn to 747 million kilograms, leading to international buyers importing cotton yarn from China, Bangladesh and Pakistan.

Since then, the government has increased the export limit to 845 million kilograms, but the weak demand in the international market has led to a decline in cotton and cotton yarn prices.

As the market is showing signs of stability, the demand for yarn in the domestic market will pick up.

The benchmark 40s combed cotton price is currently at 220 rupees / kg, compared to 250 rupees / kg a month ago.

Insiders say demand has begun to show signs of recovery.

Earlier, when demand was weak, buyers expected cotton and cotton yarn prices to fall further.