Home / Knowledge / News / Textiles / Spun yarn production growth in FY16 slowest in 4 years
Spun yarn production growth in FY16 slowest in 4 years
26
May '16
India's cotton yarn production grew by 2 per cent to 4,136 million kg in FY2016, which is the slowest pace of growth during the last four years, professional investment information and credit rating agency ICRA has said.

In its update on India's spinning sector, it pointed out that earlier, cotton yarn production had grown by 14.6 per cent, 9.6 per cent and 3.2 per cent respectively in FY2013, FY2014 and FY2015. Further, as 3/4th of India's spun yarn production is cotton-based, the growth in total spun yarn production has also emulated this trend with a 3.2 per cent growth in FY2016 as against 11.3 per cent, 9.1 per cent and 3.4 per cent growth in FY2013, FY2014 and FY2015 respectively, which is also the lowest in last four year.

The marginally higher growth in total spun yarn production compared to cotton yarn production in FY2016 reflects an increased share of manmade/blended spun yarn aided by enhanced competitiveness of polyester fibre, given the sharper decline in polyester prices compared to cotton prices, the report said.

Supported by the aforesaid factor, the growth in production of non-cotton yarn in FY2016 was 6.4 per cent against 3.8 per cent in FY2015.

According to the report, tepid domestic consumption and subsiding exports pose challenge to volume growth.

The slow pace of growth in spun yarn production has been driven by factors like tepid domestic consumption and limited growth in exports.

ICRA estimates domestic consumption growth for FY2016 to be 1.4 per cent (7.6 per cent in FY2015) for cotton yarn and 3.1 per cent (6.3 per cent in FY 2015) for spun yarn. This is the lowest level of domestic consumption growth since FY2013. The growth in cotton yarn exports has also been slow with exports of 1,302 million kg in FY2016, which reflects 3.7 per cent growth (47.5 per cent and 18.3 per cent growth witnessed in FY2013 and FY2014).

In its outlook, ICRA said high dependence on exports to China and resulting sensitivity of India's exports to China's policy on reserve cotton stock has always warranted a cautious outlook on India's yarn exports. Thus, slow growth in domestic consumption and exports will pose a challenge for profitability of spinners if the demand growth remains muted in FY2017. (SH)

Fibre2Fashion News Desk – India

Must ReadView All

Neelesh Hundekari speaking at the event. Courtesy: Subir Ghosh

Textiles | On 27th May 2017

Fabric of Change initiative announces €250000 scaling fund

The Fabric of Change initiative of Ashoka and the C&A Foundation is...

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...

Textiles | On 27th May 2017

Indian exports can touch $325 bn in 2017-18: FIEO

Indian exports are on upward trend in last few months as the country...

Interviews View All

Neel Sawhney
One Friday

‘The share of kidswear segment in the online sector is still small in...

Dinaz Madhukar
DLF Emporio and DLF Promenade

‘Each event and promotion is planned out keeping in mind the business of...

Binoy Ravjani
Hero's Fashion

‘One of the recent trends in hand block printing is the indigo process,...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Igor Chapurin
Chapurin

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

Madhu Jain
Madhu Jain

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