No parity between cotton and yarn prices: SIMA
The increase in the prices of cotton has paralysed the textile industry and even the top mills are incurring huge losses.
By PTI |
COIMBATORE: The increase in the prices of cotton has paralysed the textile industry and even the top mills are incurring huge losses, according to the apex body of South Indian Textile Mills here.
The predominantly cotton-based Indian textile industry had been performing extremely well during the period 2003-2007, mainly due to adequate availability of good quality of home grown cotton, sources in the Southern India Mills' Association (SIMA), said.
To prove their point, the sources said that Shankar-6, a major cotton variety grown in Gujarat and normally used for producing 40s yarn, was priced at around Rs 19,000 per candy during the years 2006 and 2007. But it was sold at Rs 23,500 per candy now, an increase of 24 per cent, they said.
However the average yarn price per bundle of 4.54 kg of 40s hank yarn was Rs 568 during the year 2006 and Rs 558 during 2007, whereas, it was sold at only Rs 553 today, a decrease of one per cent, when compared to 2007 averageid.
The predominantly cotton-based Indian textile industry had been performing extremely well during the period 2003-2007, mainly due to adequate availability of good quality of home grown cotton, sources in the Southern India Mills' Association (SIMA), said.
To prove their point, the sources said that Shankar-6, a major cotton variety grown in Gujarat and normally used for producing 40s yarn, was priced at around Rs 19,000 per candy during the years 2006 and 2007. But it was sold at Rs 23,500 per candy now, an increase of 24 per cent, they said.
However the average yarn price per bundle of 4.54 kg of 40s hank yarn was Rs 568 during the year 2006 and Rs 558 during 2007, whereas, it was sold at only Rs 553 today, a decrease of one per cent, when compared to 2007 averageid.
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