February 2020 Issue Apparel February 2020 issue | Page 105

INDUSTRY INSIGHTS
SALES PICKED UP, OWING
TO LOWER PRICES THAT
MILLS STARTED TO OFFER
IN ORDER TO SUSTAIN
THEMSELVES.
yarn output further lowered business for Indian
spinners. However, much has changed during the
last few months of 2019 and as we march into
2020, it will be safe to say that the spinners are
readying their cart for prosperity. But is it really the
time to stay hopeful?
WHAT HAPPENED DURING THE LAST
PHASE OF THE DECADE?
The decline in trade owing to the presence of
cheaper alternatives had thrown a shadow of
distress on the mills. However, the industry saw a
ray of hope during the last quarter and during that
phase, approximately 2,20,000–2,30,000 bales
per day saw movement.
As we inched towards the last few months of
2019, counting days to the New Year, spinners
started recording better sales. Yarn movement
improved during the last few quarters of the year.
Sales picked up, owing to lower prices that mills
started to offer in order to sustain themselves.
This is why export demand for Indian cotton
from Bangladesh and China for lower prices
also started to rise. The volume of sales rose
considerably during November and December.
However, this sudden rise hinted at a bigger
disparity and meant that the moment the prices
of cotton are hiked, sales would drop. Now,
regularity is a question on everyone’s mind.
As per reports, the Indian spinning industry,
one of the biggest in the world, is home to more
than 50 million spindles. India boasts the second
highest spindleage after China and its share in
the world trade of cotton yarn comes up to 25
per cent.
APPAREL
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February 2020
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