Login ID:
Password:
Partner Login
Contact Us : 07666977977

DeMote Impact: Export Only Solace But Holidays May Thwart Yarn Exporters

20 Dec 2016 11:15 am
 Comments 0 Comments  |  Comments Post Comment  |  Font Size A A A 

MUMBAI (Commoditiescontrol) – Demonetisation has severely compressed domestic demand for apparel and textiles, leaving producers to look at exports, particularly yarns. For yarns, about 74% is sold in domestic market while 26% is shipped to overseas markets. This year, exporters had an added advantage of depreciating Indian Rupee, which make goods cheaper for importing countries.

Sources said that if Rupee depreciation support continues, yarn market proportion can change with exports accounting for 40% and 60% domestic.

But with demonetization, this advantage is apparently loss as yarn production has slowed down due to weakening demand from domestic fabric makers. The worst hit is the demin industry, whose revival is going to be very slow. Even in knitting, about 60-70% of capacity were closed but now are slowly restarting. While output will recover sooner or later, what remains to be seen is how exporters will cope up in the ensuing vacation season.

Exporters are likely to face difficulties as the Christmas holidays are approaching with just a week to go. All global markets remain close during this period for about two weeks. Further, the Chinese New Year holidays will begin from 28 January to 20 February. During this long holiday, majority of textile units remain shut as labourer and customs will be on a vacation. So, any export consignment shipped from India will remain stuck at the Chinese port itself.

In the interim, as currency issue eases by mid-January as per RBI’s claim, textile production will resume but will be largely for domestic market as exports will take a backseat due to holidays and no buying season seen on the horizon as of now.

(By Commoditiescontrol Bureau; +91-22-40015522)


       
  Rate this story 1 out of 52 out of 53 out of 54 out of 55 out of 5 Rated
0.0

   Post comment
Comment :

Note : This forum is moderated. We reserve the right to not publish and/or edit the comment on the site, if the comment is offensive, contains inappropriate data or violates our editorial policy.
Name :  
Email :  
   

Top | Post Comment  

Latest Special Reports
Weekly:Unfixed Cotton On Call Marginally Declines In US...
Technical: Cotton Seed Kadi : Sideways consolidation
Technical: Cotton Bales Rajkot- Expect Higher Range To ...
Weekly: Cotton Exhibits Bullish Trend
USDA WASDE Raises World Cotton Production For 2016-17
more
Top 5 News
Tight Supply-Demand Balance Sheet May Keep Castor Seed ...
India Soymeal Likely To Trade Rangebound Next Week
India Edible Oil Outlook Seen Down Next Week
Weekly:Unfixed Cotton On Call Marginally Declines In US...
India Oilseed Market Will Focus On Demand For By-Produc...
Top 5 Market Commentary
No & Never For GM Mustard Crop Sowing - Rajasthan Agri ...
India 2016-17 Mustard Output Likely At 72 Lakh Tonnes -...
India Daily Cotton Arrivals Decreases 4,500 Bales
Chana & White Pared Early Gains In Mumbai; Tur Firm
Domestic Urad Firm In Delhi; Moong Eases
Copyright © CC Commodity Info Services LLP. All rights reserved.