Home / Knowledge / News / Textiles / Indian cotton output to be 39mn bales this season: SIMA
Indian cotton output to be 39mn bales this season: SIMA
01
Aug '14
Mr. T Rajkumar
Mr. T Rajkumar
The predominantly cotton based textile industry has performed well during the financial year 2013-14 when compared to the previous year across the value chain. But, there was sluggishness in the market during April-June 2014 due to decline in yarn exports to China, and also fall in the demands for fabrics and made-ups exports to EU countries.  This has resulted in over-supply and making the yarn prices to decrease to the tune of Rs.10 to 25 per kg depending upon counts.  However, the garmenting sector had around 15% growth during the current year when compared to the previous year. 
 
In India, the cotton prices increased upto Rs.2000 per candy of 355 kgs during the last two months.  Though there is a price reduction to the tune of Rs.1000 per candy during the recent days, mills still carry high cost cotton.  For the mills in Tamil Nadu, the landed cost of good quality cotton ranges between Rs.45000 and Rs.46000.  It may be noted that now the cotton market in the country is left with average and below average quality cotton till the new cotton arrives. Though the West African cotton is cheaper by Rs.1000 to Rs.1500 per candy when compared to the domestic cotton prices, it would take three to four months for the cotton to arrive in the mills and moreover, SMEs do not have access for imported cotton. Therefore, there is no scope for further reduction in yarn prices as the mills are already incurring losses with the high cost cotton held by them.
 
The unprecedented volatility in the global cotton prices prevailed during 2010-11 made the major retailers in US and EU to reduce their inventory from eight months to 4-5 months as they lost heavily in 2010-11. The retailers have been gradually reducing their inventory and therefore the demands were unstable. The slowdown in economic growth and unemployment problems also added fuel to the situation. Now, the economy in US is doing fairly well and EU has also recovered. Therefore, the demand for textiles would improve in the coming months particularly for the forthcoming summer.
 
Mr. T Rajkumar, Chairman, The Southern India Mills’ Association (SIMA), in a press release, stated that the Indian market is normally dull during peak summer. The capacity utilization in major weaving clusters, particularly Maharashtra and Tamil Nadu operate at 20-30% lower capacity. The delayed monsoon, extended summer till June end and also the advanced Ramadan festival made the powerloom clusters continue to operate at lower capacity utilization. The water scarcity also affected the capacity utilization of wet processing in Maharashtra, Gujarat and other states. Hence, the pipeline has become dry and the market is expected to pick-up at any moment as the festivals are fast approaching.
 
 

Must ReadView All

L-R Manish Singhai, COO, Peter England; Vinai Kumar Saxena, chairman, KVIC; Ashish Dikshit, business head, ABFRL and Anshu Sinha, CEO, KVIC while signing agreement. Courtesy: ABFRL

Textiles | On 24th May 2017

Aditya Birla & KVIC enter into a strategic partnership

Aditya Birla Fashion and Retail Ltd (ABFRL) and Khadi and Village...

Courtesy: Jabong

Apparel/Garments | On 24th May 2017

Jabong Mood Store redefines online shopping in India

Jabong, India's leading online fashion retailer, has launched the...

Textiles | On 24th May 2017

Starlinger unveils FX 8.0 circular loom for fabric making

Starlinger, a leading supplier of machinery for woven plastic...

Interviews View All

Varinder Singh Jawanda
Trendy Bharat

Sizing and fitting issues are inherent problems for companies expanding...

Ghanshyam Ghoghari
Kimora Fashion

Bridalwear is not about reds and whites anymore

Deepak Jain
Baggout

We are using Facebook and Instagram to promote ourselves

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

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

news category


Related Categories:
May 2017

May 2017

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

SUBSCRIBE


Browse Our Archives

GO


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