Indian cotton cost pressures are expected to reduce cotton mill run rut - Textile information - Textile net - Textile integrated service provider

According to a recent analysis of foreign industry agency at present India textile machine generally weaker and cotton prices make the cotton yarn prices stagnate, cotton yarn sales don't expect in the future. India's fiscal 2017 first half, Indian textile mills to bring huge pressure rising prices, but the past two months, the Indian monsoon rains in good condition, planting area of expansion and expectations of the crop fertility is expected to make the textile mills of financial conditions have improved. 4-2016 S - November, India 6 spot prices from 90 rupees ($/ kg soared to 140 rupees ($/ kg, domestic cotton production and inventory exciting cotton prices. At the same time, China's cotton falling inventories also provides support for cotton prices. Recent half a year, cotton prices to the Indian textile mills to bring a lot of pressure. According to the rating agency ICRA, according to a recent survey, the mill profit squeeze again, the main problem is sales revenue growth and raw material costs increase. Recently two quarters, the average of the Indian textile mills in 2016 on September 15. Fell to 4% in December 12. 8% to fall further in March 2017 to 11%. In recent two months, India cotton prices brought hope to textile, but can be sustained? Industry experts expect 2017/18 planting area increased by 10%, India and the United States and Australia to harvest good prospect, so it is difficult to a stronger international cotton prices. Indian cotton prices is closely related to the international cotton prices, so in the coming months India cotton prices also is expected to remain weak. The crux of the problem lies in the cotton demand is difficult to increase. In fiscal year 2017 Indian cotton yield dropped to the lowest for five years, 2016 textile weak demand is the main reason of the cotton yarn exports plunged ( China needs to reduce) , cotton yarn exports accounted for a third of Indian cotton yarn consumption. Although India's cotton yarn exports recovered in recent months, but not enough to offset the early stage of the greatly reduced. With the approach of the holiday sales in India, elimination of waste money policy influence and GST the transition of the new tax system, spinning mill in India expected increased purchases of domestic. ltd. At the same time, due to domestic textile machine generally weaker, cotton prices, cotton prices may be stagnant, so future cotton yarn sales or not too big hope, mills profit is difficult to have significant improvement. In addition, although a 5% GST tax for cotton textile industry is a good thing, but most Indian textile mills are small and medium-sized enterprises, so the GST the problems caused by the new tax system and increase the cost of short-term supply problems may continue for a period of time. Textile mills of real operating conditions may be at least until 2018 during the second half of the fiscal year to show.