Indian textile industry believes that the Government’s decision to remove import duty on cotton import until 30 September is likely to help bring down prices of the commodity. It is also said that the industry might not see a long-term impact on prices.
UP Singh, Textile Secretary said that it would enable people who want to import. “We are expecting that soon; you would certainly see the impact on prices going down but at the same time we would not expect the prices to be very low because there is a shortage all over (the world),” he added.
The Textile Secretary also said that “This year, we expect at least 10-15 per cent increase in area under cotton because farmers have got a very good rate.” The top official of the Ministry of Textiles has said that every month, about 1.5-2 lakh spindles are being added to the spinning industry because demand is good.
T. Rajkumar, Chairman, Confederation of Indian Textile Industry (CITI) said that the cotton yarn prices will not increase further. “We expect yarn prices to start correcting from 15 Mayand the consumer industries will begin realising the price benefit from June,” he said.
Ravi Sam, Chairman, Southern India Mills’ Association (SIMA), also believes that the yarn prices would start coming down when the cotton prices go down.
The textile industry has been seeking relief as cotton prices have soared to about Rs 90,000 per candy.
Source : https://in.apparelresources.com/