Spinning Mills cheer over softening cotton prices in H2FY20

摘要

Spinning mills in the country are on the cusp of a revival in the second half of the current financial year due to a sharp decline in raw material cotton prices as well as stable realisations from yarns. Cotton prices have declined by more than 8 per cent since April with the benchmark MCX variety ginned cotton trading at Rs. 18,650 a bale (170 kg) against Rs. 22,600 a bale in the first week of April. By contrast, however, cotton yarn prices remained stable at Rs. 250 a kg of fair trade combed of 42 count variety. "Cotton prices are currently subdued. But steady improvement in cotton yarn demand works out better for spinning mills," said Atul Ganatra, president, Cotton Association of India (CAI). R K Dalmia, senior president, Century Textiles and Industries, believes that cotton price decline may not necessarily prompt fabric manufacturers to cut their product prices. However, it would certainly help improve profitability in the quarters to come.