Home / Knowledge / News / Textiles / Imports of low priced yarn giving bankers sleepless nights
Imports of low priced yarn giving bankers sleepless nights
05
Feb '09
Imports of cost competitive spinning yarn from neighbouring India, is giving sleepless nights to most bankers who have advanced loans to spinning mills across the country. Their fears are unfounded as banks have advanced huge amounts of loans to these spinning mills, which have high capital costs.

Now with cheap Indian yarn seeping in to the markets, the bankers are worrying about the repayment capabilities of these mills, since they have huge exposures and are scared that these loans could turn in to non-performing assets (NPA's). Already, according to sources, some of the mills have started delaying repayments.

The mills are holding on to large inventories partly due to the Indian influx of low priced yarns and also due to slow off take from the weaving units of the country, due to the slowdown in exports from the sector. In the last few years, there has been a huge increase in spinning spindle capacity as Bangladesh was importing a major volume of yarn required to feed its apparel industry needs.

Imports of yarn from India were restricted earlier, but the last care taker government in its last days withdrew the restrictions on import of yarn from India. Indian yarn is imported at 15-20 US cents per pound lower than those prices quoted by Bangladeshi spinners.

Fibre2fashion News Desk - India

Must ReadView All

Pakistan's Finance Minister Mohammad Ishaq Dar presenting Budget 2017-18 in National Assembly in Islamabad on May 26. Courtesy: PID, Pakistan

Textiles | On 27th May 2017

Pakistan Budget 2017-18 proposes 4 new measures

To support the textile sector in Pakistan, finance minister Mohammad...

Courtesy: IRRC Institute

Apparel/Garments | On 27th May 2017

Up to 7.5 mn retail jobs in US at risk due to automation

About 6-7.5 million retail jobs in the US are likely to be automated...

Textiles | On 27th May 2017

Indian textiles ministry promotes wool sector

The ministry of textiles has taken multiple steps to promote the wool ...

Interviews View All

Nitin Bhatia
Trend Arrest

Setting up a brand for online selling is easy, but running the brand is not

Anavila Misra
Anavila Collection

Fashion shows are also encouraging and highlighting sustainable fashion

Krishnanand Tripathi
Textrade International Ltd

We believe in vocational education for entry-level employees, offering...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Madhu Jain
Madhu Jain

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

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