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Record price rise in cotton and cotton yarn in India has encouraged domestic industry to explore possibilities of imports. According to trade sources, some Indian companies have begun to import cotton and polyester yarn from Taiwan. Traders expect that if cotton yarn imports pick up, better supply of cotton yarn may put pressure on domestic prices.
According to trade sources, some big companies of weaving segment in the country have made deals for import of about 4000-5000 tonnes of yarn. The landed cost of imported yarn will be around ₹15-20 per kg cheaper than the domestic prices. According to sources, more such deals are expected for import of yarn in the country. As per information in trade circles, apart from cotton yarn, polyester and blended yarn are also being imported. Bharat Bhai, a trader of Ichalkaranji in Maharashtra told Fibre2Fashion, “Due to the high prices of cotton yarn in the country, the import from Taiwan is quite feasible. Imported supplies can dampen domestic market prices of yarn. However, deals for imports of yarn in little quantity may not increase domestic supplies significantly in near future.”
According to a Ludhiana-based trader Gulshan Jain, Indian imports have encouraged Taiwan’s suppliers to quote higher prices for further deals. If there is an increase in prices of Taiwanese supply, import parity will be wiped out. He also said that it will take at least a month’s time for Taiwanese supply to reach in India. The supply is expected to come in July only when, till then domestic cotton prices may also correct due to the prospective imports. But it is expected that Taiwanese supply can put psychological pressure on the domestic yarn market.
Record price rise in cotton and cotton yarn in India has encouraged domestic industry to explore possibilities of imports. According to trade sources, some Indian companies have begun to import cotton and polyester yarn from Taiwan. Traders expect that if cotton yarn imports pick up, better supply of cotton yarn may put pressure on domestic prices.
Fibre2Fashion News Desk (KUL)
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