Home / Knowledge / News / Textiles / Lower off take in consumption of cotton expected in current year
Lower off take in consumption of cotton expected in current year
07
Feb '09
Reduction in purchasing power in domestic as well as in worldwide markets, following the economic slowdown is likely to result in lower cotton consumption by domestic textile mills this year. As per the estimates provided by cotton traders, domestic textile mills' cotton consumption in 2008-09 may range between 18 and 20 million bales (1 bale:175 kg).

The domestic consumption in the period 2007-08 was 21-23 million bales. This year the same is projected to fall short by 3-4 million bales according to authoritive sources, in the cotton industry. To add to the woes of the textile mills, the increase in the MSP of cotton in the new cotton season has put pressure on yarn prices.

Due to the slowdown, overseas buyers are insisting on lower prices, but as the increase in the MSP of cotton was 25-40 percent, the market prices of cotton are also ruling on the higher side, due to which these spinning mills are not able to sign contracts at rates demanded by foreign buyers, leading to a loss of business to neighbouring Asian countries.

Cotton consumption in the main consuming region of Tamil Nadu which consumes 50 percent of the white gold is also down, due to the on-going electricity crisis, since a long period in the state. The recessionary trends have also forced mills to cut their operating rates by 15-40 percent, which is also affecting the consumption of cotton.

Fibre2fashion News Desk - India


Must ReadView All

Apparel/Garments | On 26th Jun 2017

GSTN registration reopens

E-commerce operators and TDS (tax deducted at source) deductors can...

Textiles | On 26th Jun 2017

Expedite release of ROSL pending claims: TEA to Centre

The Tiruppur Exporters' Association (TEA) has again urged Union...

Textiles | On 26th Jun 2017

'Export promotion schemes to continue under GST regime'

The export promotion schemes will continue under GST regime, said...

Interviews View All

Yash Maniyar
Rekha Maniyar

Indian fashion market is growing at a staggering rate

Smarth Bansal
Colorjet India Limited

We would like to venture more companies into the Indian market

Karel Williams
Dow Microbial Control

'Silvadur is most rapidly adopted in areas where hygiene-conscious and...

Eric Scholler
Groz-Beckert

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

Mohammad Hassan
Biax Fiberfilm

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

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

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:
July 2017

July 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