High Cotton Prices Hit Textile Industry.

Ludhiana With the constant increase of cotton prices from Rs 22,000 per bale in previous years to the current Rs 41,000 per bale, farmers are no doubt very happy. Industrialists are, however, upset because it has further increased the prices of cotton yarn simultaneously.

Last year, the price of cotton yarn was Rs 110 per kg which is now Rs 195 per kg.

With this, garment prices are also set to shoot up and even export orders may fall drastically.

Vinod Thaper, president of the Club, said, “The after-effects of the high prices of cotton in the mandis are being seen in the textile industry, which is leading to a downfall in garment exports.”

Incidentally, this year’s cotton crop has been damaged by the floods in Pakistan and, hence, industrialists have no choice but to depend on the domestic market, said Knitwear Club General Secretary Narinder Miglani.

The cotton export policy is also more favourable to neighbouring countries and select major exporters of the country while small and medium units are suffering a lot, he added.

Source : expressindia.com