Cotton and wool yarn producers sitting on huge stocks as garment producers stay away

The woes of the Indian spinning sector are far from over as the increase in their costs has been accompanied by a decline in prices of both cotton and woolen yarns. This has further added to their financial woes.

According to media reports the rates of several types of woolen and cotton yarns have fallen by 10 to 15 percent over the past two months. The fall in woolen yarn rates is against norms as the demand for this yarn increases at this time of the year to ship winter clothing in time.

The sector is said to be experiencing a lukewarm approach from buyers and distributors which is a setback for the clothing business.

The recession, in the opinion of clothing producers and traders, is the result of several factors, including overproduction and distributor and dealer liquidity concerns.

Due to the predicted decrease in output, woolen yarn rates will likely continue to decline.



President Ludhiana MSME Association Harish Kairpal while talking to the media said the garment industry is under severe recession. This he added has impacted the uptake of all types of woollen yarns and some cotton yarns, which have decreased the rates of yarns by 10-15 percent.

Industry experts feared that the garment industry sitting on last year’s unsold stocks is likely to suffer significant losses.

Moreover, this year’s early start to winter garment production would not be possible.

Industry players are worried that despite huge reductions in rates of yarn, some of which are available at throwaway rates, there are no buyers because there is no clarity on when the orders from distributors and dealers based in other states will pour in.