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Cotton Spinners Recovery in Q4: ICRA Report

The report predicts that domestic spinners will see gradual recovery starting in the fourth quarter of 2017-2018. Lower cotton prices are expected due to healthy cotton crops and higher demand is expected to increase yarn prices. While cotton prices increased recently due to slower arrivals during elections and pest concerns, crop quantities and quality are not expected to be significantly impacted and prices are forecast to remain 10-12% lower than a year ago. Improved export incentives are also seen supporting higher textile exports and demand for yarn starting in the fourth quarter.

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Jaldeep Karasaliya
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52 views2 pages

Cotton Spinners Recovery in Q4: ICRA Report

The report predicts that domestic spinners will see gradual recovery starting in the fourth quarter of 2017-2018. Lower cotton prices are expected due to healthy cotton crops and higher demand is expected to increase yarn prices. While cotton prices increased recently due to slower arrivals during elections and pest concerns, crop quantities and quality are not expected to be significantly impacted and prices are forecast to remain 10-12% lower than a year ago. Improved export incentives are also seen supporting higher textile exports and demand for yarn starting in the fourth quarter.

Uploaded by

Jaldeep Karasaliya
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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ICRA: Spinners to see better times from March quarter: Report, Retail News, ET Retail Page 1 of 2

Spinners to see better times from


March quarter: Report
While there has been a growth in cotton prices in the recent weeks, Icra believes that
the same to be an aberration following slower-than-usual arrivals in Gujarat owing to
elections and concerns emanating from reports of pest attacks, the report said.
PTI | December 30, 2017, 07:57 IST

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Domestic
spinners
are likely to
witness a
gradual
recovery
from the
fourth
quarter of
after facing
multiple
difficulties
over past several quarters affecting their profitability, says a
report.

"Improvement in performance of spinners is likely to be


aided by a downward bias in cotton prices amid healthy
cotton crop and higher yarn prices due to returning demand,"
Icra said in a report today.

While there has been a growth in cotton prices in the recent


weeks, Icra believes that the same to be an aberration
following slower-than-usual arrivals in Gujarat owing to
elections and concerns emanating from reports of pest
attacks, the report said.

The agency believes that the crop quantity and quality is


unlikely to be impacted considerably because of the
aforesaid concerns and the arrivals are likely to pick up in
the last quarter.

Accordingly, domestic prices are likely to remain 10- 12 per


cent lower than average cotton price during the 12 month
period ending September 2017, it said.

https://retail.economictimes.indiatimes.com/news/industry/spinners-to-see-better-time... 30-12-2017
ICRA: Spinners to see better times from March quarter: Report, Retail News, ET Retail Page 2 of 2

"The scenario on demand front is also likely to be more


favourable mainly supported by improved clarity on export
incentives for textile goods during recent weeks, which in-
turn may support India's overall textile exports from fourth
quarter of FY18," it said.

With improved demand the yarn realisations are likely to


witness some upward bias, however, it will be limited due to
low cotton price, the report added.

https://retail.economictimes.indiatimes.com/news/industry/spinners-to-see-better-time... 30-12-2017

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