Home / Knowledge / News / Textiles / Spinners selling cotton yarn at below cost rates
Spinners selling cotton yarn at below cost rates
Jun '11
Owing to sluggish demand, the spinning mills are selling cotton yarn at a price, which is 16 percent lower than the production cost. The yarn prices have plummeted sharply over the past few months.

The yarn that the spinners are selling now, was made from cotton procured by them in February 2011 at a price which ranged between Rs. 55,000-63,000 per candy (1 candy = 356 kg). However, the prices have now plummeted to Rs. 44,000-45,000 per candy.

The average price of the standard 40's combed yarn, which at one point soared to Rs. 240-250 per kg, is now being sold by the spinners for Rs. 200-205 per kg.

Actually, yarn stocks started spiralling last year as exports were capped at 725 million kg. This cap was subsequently hiked to 845 million kg, but still stocks went on compounding. The problem of the spinners became so severe that they opted to go on strike in the last week of May this year.

Yarn exports are capped at 845 million kg for this financial year too, but orders are not pouring in plenty. Normally, domestic orders too, remain dull during this part of the year, as the demand for readymade garments shrinks due to absence of any festive or wedding season.

Generally, the demand for yarn as well as fabrics perks up towards the end of the rainy season. Hence, in order to generate some revenue at the moment, the spinners have no other option but to sell yarn at lower rates.

According to the experts, the small-time spinners are the ones who would suffer the most, as the long-term players have a capacity to withstand a 15-20 percent cut in their profit margins.

While no spinning mill would like to sell off its stocks at low rates, some industry people claim that the situation surfaced due to greediness of the spinners. They argue that if the spinners had released their stock for sale in accordance with demand, rather than holding the same in expectation of further price hike, the situation would have been better.

Experts see the yarn market remaining unstable till September-October, after which there is a possibility of the demand rising once again.

Fibre2fashion News Desk - India

Must ReadView All

Union textiles minister Smriti Irani addressing at the Texprocil Annual Export Awards. Courtesy: PIB

Textiles | On 22nd Oct 2016

Govt to extend special package to home textiles segment

The Central government is likely to extend the recently approved Rs...

Reebok Liquid Speed Grey. Courtesy: Business Wire

Apparel/Garments | On 22nd Oct 2016

Reebok’s Liquid Factory brings sneaker creation to US

Reebok, a pioneer in the sporting goods industry, has brought sneaker ...

Opening ceremony of the new UL Vietnam laboratory. Courtesy: Business Wire

Textiles | On 22nd Oct 2016

UL opens first testing laboratory in Vietnam

UL, a global safety science organisation, has officially opened its...

Interviews View All

Manfred Mentges
Sedo Treepoint GmbH

We see a higher demand in colour management systems, as customers see big...

Saket Garg
Garg Corporation

The biggest challenge is lack of skilled workforce and competition from...

Nuno Venda

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

Suresh Patel
Sidwin Fabric

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

Eric Scholler

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

Iago Castro Asensio
RCfil Distribuciones S.L.

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

Judy Frater
Somaiya Kala Vidya

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

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

October 2016

October 2016

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


Browse Our Archives


Advanced Search