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

Courtesy: Mario Crosta

Textiles | On 23rd Oct 2018

'Global textile machinery market may grow at 14% by 2020'

Analysts have predicted that the global textile machinery market may...

Cotton production and exports in West Africa. Courtesy: FAS/USDA

Textiles | On 23rd Oct 2018

Record cotton production to drive West Africa exports

Cotton exports from West Africa for 2018-19 are projected to surpass...

Courtesy: Prudence Earl on Unsplash

Textiles | On 23rd Oct 2018

Sri Lanka's textile exports up 4.7% in Jan-July '18

Sri Lanka’s earnings from textiles and garments exports increased by...

Interviews View All

Veronique Lee, Modavanti

Veronique Lee
Modavanti

‘Sustainable fashion is trending upwards, slowly but surely, as people...

Top executives, Textile industry

Top executives
Textile industry

Defining MSMEs on the basis of turnover makes it simpler to do business

Abhishek Ganguly, Puma India

Abhishek Ganguly
Puma India

‘As a brand, Puma is always looking for new and innovative ways to inspire ...

Ravi Raj Desai,

Ravi Raj Desai

Himalaya Cotton Yarn Ltd manufactures high quality denier. The spinning...

Nitesh Mittal,

Nitesh Mittal

Kusumgar Corporates is a leading manufacturer of technical textiles and...

Sandip Bhojani, Manthan Patel,

Sandip Bhojani, Manthan Patel

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

Giulio Cesareo, Directa Plus SpA

Giulio Cesareo
Directa Plus SpA

Established in 2005, Direct Plus SpA, is one of the largest producers and...

Iago Castro Asensio, RCfil Distribuciones S.L.

Iago Castro Asensio
RCfil Distribuciones S.L.

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

Prof Seokheun (Sean) Choi, Binghamton University, State University of New York (SUNY)

Prof Seokheun (Sean) Choi
Binghamton University, State University of New York (SUNY)

A team of researchers from the State University of New York (SUNY),...

Sidharth Sinha, Sidharth Sinha

Sidharth Sinha
Sidharth Sinha

<b>Sidharth Sinha</b> has contributed to the successful rebirth and...

Amiben Shroff, Shrujan

Amiben Shroff
Shrujan

From its modest beginning in the late 1960s, Shrujan has grown into a...

Pranav Mishra, Huemn

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

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

Leave your Comments


October 2018

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

news category


Related Categories:

Advanced Search