Home / Knowledge / News / Textiles / Demand for yarn & fabric set to rise in Indian market
Demand for yarn & fabric set to rise in Indian market
21
Jun '12
The demand for yarn and fabric is set to increase in the Indian market during the current financial year due to softening of cotton prices, the Centre for Monitoring of Indian Economy (CMIE) stated in its monthly review of the Indian economy.

Last fiscal, the demand for yarn and fabric had fallen owing to poor demand from the downstream apparel manufacturing sector.

The decline in cotton prices, compared to last fiscal, will lead to a fall in prices of readymade garments, which, in turn, would increase the demand for fabric, the CMIE said.
 
The CMIE report predicts a 6.5 percent year-on-year growth in fabric production during the current financial year, owing to the rise in demand.
 
Last fiscal, the demand for fabric dipped as clothing items became expensive owing to rise in yarn and fabric prices. The imposition of 10 percent excise duty further lifted the prices of apparels.
 
In 2011-12, hosiery fabric as well as synthetic fabric output fell by 8.7 percent year-on-year. Yarn production decreased by 5.3 percent, while output of cotton yarn, which formed 54.2 percent of total yarn, dipped by 8 percent.
 
In comparison, cotton fabric production is likely to grow by 4.5 percent y-o-y during the current fiscal, while synthetic fabric output is expected to rise by 6.3 percent y-o-y, CMIE said.
 
The improved demand for fabric will lead to a similar increase in demand for yarn. The CMIE expects India’s cotton yarn production to jump by 10 percent y-o-y, and synthetic yarn output to rise by 3.5 percent y-o-y.
 
The monthly review also highlights that the Indian apparel exports would lose its growth momentum during the current financial year. It is because the demand for garments is likely to decline from two of India’s biggest markets – the US and the EU, owing to financial crisis in those countries.
 
Indian apparel exporters may not reap full benefits of the depreciating Indian rupee, which is estimated to depreciate by 10.5 percent in 2012-13, according to the CMIE. It is because the buyers have already started asking for discounts.
 
Indian apparel export volume is projected to grow by only 3.5 percent during the current fiscal. In terms of value, CMIE expects apparel exports to decline by 0.3 percent, especially due to reduced input costs compared to previous fiscal year.
 
In 2011-12, India’s apparel exports grew 24.8 percent in value due to an increase in the cost of raw materials such as yarn and fabric and a weak rupee.
 

Fibre2fashion News Desk - India


Must ReadView All

Textiles | On 22nd Jul 2017

Govt constitutes GST Feedback and Action Room

The Government of India has constituted a Feedback and Action Room...

Textiles | On 22nd Jul 2017

India’s cotton textile exports fell in FY17: Tamta

The overall export of cotton textiles from India declined in 2016-17...

Textiles | On 22nd Jul 2017

Stella McCartney, Bolt Threads partner for eco fashion

Fashion designer Stella McCartney has partnered with Bolt Threads for ...

Interviews View All

Darshan Mehta
Infinium Polychem

We are spending double digit figures on R&D

Shiladitya K Joshi
Truetzschler India Private Limited

India ITME provides a platform to interact with our stakeholders

Amit Jain
Shingora Textiles Ltd

‘In terms of fabric, the fastest growing category for us is a blend of...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Nisha Chanda
Whistling Woods International School of Fashion

<div>A lack of upgraded courses in costume designing and fashion as per...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

July 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Thanks for your valuable feedback. Claim your free latest sustainability e-book.


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search



X