Home / Knowledge / News / Textiles / High cotton prices pinch denim producers margins
High cotton prices pinch denim producers margins
17
Jun '10
The flare-up in raw cotton prices in recent months by nearly 25-30 percent has put pressure on margins of the cotton value-added chain, and the denim fabric manufacturing sector in particular, since it is not possible for them to pass on the increase in costs at one time.

The denim fabric is normally produced from short staple cotton fibre, which has an average length between 12-24 mm and the prices of the V-797 short staple cotton variety which is grown in Gujarat has shot up by 25 percent since last October.

Raw cotton accounts for around 50 percent of the input costs in denim fabric manufacturing and the surge in prices has resulted in production costs ascending by around 12-15 percent. Though the denim producers have hiked prices, it is completely not possible to pass on the complete burden to their buyers.

According to Dr PR Roy, who is known as 'Father of Denim' in India and is a reputed Textile Management Consultant and also Director of Fibre2Fashion, “Globally there would be a trend of higher cotton prices for the days to come, excepting perhaps at the beginning of the upcoming new season".

He added by saying, “Cotton prices may not come down appreciably in long run and accordingly textile players particularly the denim producers would have to look at somehow more economic cotton mixing for a given product and or increasing sales prices.”

He concluded with an advice to denim producers by saying, “Denim manufacturers should invest in product development and product innovation, which might help them to realize higher denim fabric prices and also try to increase sales volumes to reduce the impact."

Fibre2fashion News Desk - India


Must ReadView All

Building of Ethiopian textile unit by Chinese firm starts

Textiles | On 22nd Jan 2018

Building of Ethiopian textile unit by Chinese firm starts

Chinese firm Wuxi No. 1 Cotton Mill will build a textile plant in...

JD.com to invest $3.1 bn to revive industry in NE China

Apparel/Garments | On 22nd Jan 2018

JD.com to invest $3.1 bn to revive industry in NE China

To back the government’s campaign to revitalize the traditional...

SIMA makes pre-budget recommendations to Indian govt

Textiles | On 22nd Jan 2018

SIMA makes pre-budget recommendations to Indian govt

Exemption of 5 per cent goods and services tax (GST) on raw cotton,...

Interviews View All

Headhonchos
Textiles & allied industry

Textiles industry is always in the forefront in accepting latest technology

Nuno Venda
ROQ

‘There has been an increase in demand for water based inks, rather than...

Top executives
Textile industry, India

Such fairs are a must for industry to showcase new innovations

Urmil Arya

Sushila International, a well established textile organisation established ...

Sandip Bhojani, Manthan Patel

Krypthm Tradelink LLP is a Surat-based manufacturer of westernwear....

Vikas Banduke

Softech Controls Private Limited (SCPL) is a part of the Cotmac Group, an...

Johan Berlin
InvestKonsult Sweden AB

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

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Bani Batra

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

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Divvya and Nidhhi Gambhir
Walnut

<b>Divvya and Nidhhi Gambhir</b> started their career with the launch 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

January 2018

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

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.1%
No
13.4%
Skip
17.5%

Total Votes: 97

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

Yes No

Active Poll

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

Yes
63.9%
No
28.9%
Skip
7.2%

Total Votes: 97

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

Yes No

Active Poll

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

Yes
87.6%
No
9.3%
Skip
3.1%

Total Votes: 97

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

Active Poll

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

Yes
82.5%
No
8.2%
Skip
9.3%

Total Votes: 97


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