Textile cos suffer as cotton price touches skyline

23 Oct '07

1 min read

Increasing demand for Indian cotton, especially in countries like China and Taiwan, has adversely affected Indian textile companies.

Profit margins have declined by nearly 10 percent in the past two years since the rapidly developing market for cotton exporters in China and Taiwan offer better prices.

Among other, Arvind Mills, NEVA Garments and Arvee Denim are the few textile giants in India, facing the dreadful consequences of soaring cotton prices. In an exclusive interview with Fibre2Fashion, Mr Karthik Krishnan of Arvind Mills said “Hike in cotton prices has increased the cost of production, reducing profit margins.”

Mr Nitin Goyal of NEVA Garment Ltd also emphasized on the issue stating that “Since expenditures are fixed, textile companies are incurring heavy losses in these situations.”

On the other hand, Aarvee Denim remains positive about the recent price inflation. Official says “Cotton price is expected to go down because the arrival of new cotton crop, estimated to be around 3, 25,000 bales, undoubtedly accounts for a good graph of production. However, in denim fabric, price per meter realization has substantially gone down.”

Although, present market casts a dingy shadow, Indian textile companies are still optimistic about a promising future in the cotton industry.

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