Yarn Industry

Higher raw material and logistics costs could dent profit margins of apparel exporters this year, according to a report. Domestic rating agency Icra said there has been a sharp surge in yarn prices since September 2020, which has touched an all-time high during May-June this year. "We expect large-mid-scale apparel exporting companies to report a healthy growth in revenues in FY'23. While high realisations are expected to support the revenue growth for the year, higher raw material and logistics costs could dent apparel exporters' profitability for the year," Icra Senior Vice President and Group Head, Corporate Sector Ratings, Jayanta Roy said. The report also said apparel exporters are likely to witness 14-15 per cent revenue growth this fiscal. About demand, Icra stated that it has remained encouraging so far. Citing examples, it said apparel imports by the European Union and the US, which account for 55 per cent of the global apparel trade, grew by 20 per cent year-on-year in t

Yarn makers, though, complain of sharp drop in demand and growing stockpiles

At the bourses, shares of textile stocks like KPR Mills, Welspun India, and Vardhman Textiles have tumbled up to 45 per cent so far this year.

High cotton prices, the Russia-Ukraine war and poor demand from the apparel industry have hit the spinning mills hard

Analysts expect that the inflated cotton prices will continue to haunt small-sized yarn spinners during the first half of FY23 (H1-FY23). However, a good monsoon season can paint a different story

Despite the pandemic, the hub posted exports of Rs 33,525 crore in 2021-2022, contributing to around 1 per cent of the country's exports revenue

The unabated surge in prices of cotton and cotton yarn may affect the country's apparel exports target of USD 19-20 billion during the current fiscal, AEPC chairman Narendra Goenka said on Thursday. He said that the prices have jumped by about 125-130 per cent during the last 18 months and one of the reasons for that would be "unchecked" exports of cotton and cotton yarn. He suggested the government to impose a temporary ban on exports of cotton and cotton yarn like Indonesia has done for its palm oil. "In 2021-22, the exports were USD 16 billion and we are targeting USD 19-20 billion this fiscal. But because of the price rise, it looks to be a concern on achieving the target. The industry is facing a big challenge at the raw material front," Goenka said. He added that if the price rise does not stop, global customers would start looking at sourcing options other than India. "About 60-70 per cent of cotton and cotton yarn are going to our competitor countries like Bangladesh and .

The minister's comments came after textile mills in Tamil Nadu, a leading exporter of garments, went on a two-day strike earlier this week demanding a ban on exports

The price of cotton yarn has increased by Rs 40 per kg after the Centre reduced the import duty on cotton.

Pakistan's Economic Coordination Council, a top decision-making body, on Wednesday allowed the import of cotton and yarn from India

Improved yarn prices because of a sharp rebound in demand in the second half of the current fiscal will help

The South Indian Hosiery Manufacturer Association has called upon the Centre to ban the export of yarn and fabric and bring yarn under the Essential Commodities Act.

Yarn price hike: According to industry sources, the production loss is estimated to be around Rs 165 crore due to the strike

Decline in crude prices also contributes to lowering the key textile raw material

The Finance Ministry will take the final decision on imposing the duty

From April, most petrochemicals have seen a price rise of 4-18 per cent; so have polymers, the raw material for plastic goods.