Cotton And Cotton Yarn Prices Plummeted &Nbsp; India Textile Mill Profits Squeezed.

Recent raw cotton

In a month, the price of benchmark yarns has dropped from the highest 280 rupees / kg to 225 rupees / kg.

The main reason for the weak price is the increase in yarn stock and the decrease in exports.

Cotton prices are also falling, adding to the worries of the spinning mills.

Cotton prices in recent years have dropped to 42000 rupees /candy (356 kg) from the highest price of 62000 rupees /candy in April.

The government resumed yarn export in April, but abolished export incentives such as tax rebates.

This is not conducive to exports, because the international market price has also declined from the peak level of -3 months in February, and export profits have been squeezed, said SanjayJain, President of the Calcutta Garment Manufacturers Association.

The price of synthetic yarn is falling, but there is still demand for synthetic yarns.

Synthetic yarn prices follow crude oil prices.

The price of synthetic yarns was 82 rupees / kg a month ago, when the crude oil price was 128 dollars / barrel, and now the price dropped to 72 rupees / kg.

According to the Cotton Advisory Committee, India's cotton output is estimated at 31 million 200 thousand bales (176 kg) this year, while the export cap is set at 5 million 500 thousand bales.

Yarn price