With a drop in Chinese demand for cotton and cotton yarn during this financial year, stocks available in the domestic market of India have increased. Though the domestic demand continues to be good for yarn and export to other countries is on, there is a fall in prices because of the increase in stock availability.
According to the industry sources, this trend too depends on the variety of cotton yarn. Export demand for cotton and cotton yarn is expected to revive soon as the Chinese policy on import of cotton and cotton yarn will be clear in a month.
T. Rajkumar, chairman of Southern India Millsâ€™ Association said that prices are expected to remain stable for cotton and cotton yarn in the coming weeks. Improvement in exports will revive the sector. They are confident that the industry will pick up this year
However, the power loom weavers in the district with the drop in cotton and yarn prices, not only the prices for fabric are affected but the demand for fabric has fallen in the last one month.
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