A local analysis agency in Mumbai, India, said that before a large amount of cotton comes on the market in the new year, it will be difficult for yarn mills in various places to resume normal operations, and high cotton prices will continue to put huge pressure on the textile and clothing industry. On the 15th, the domestic S-6 spot price in India remained stable, currently at 102,500 rupees/kandy (discounted 167.85 cents/pound), while the spot price of S-6 in the same period last year was 5,100 rupees/kandy (discounted 88.75 cents/pound) , one year later the price basically doubled year-on-year.
According to local media reports, nearly 70% of India’s spinning production capacity is located in the southern states of India, and nearly 10% of it is currently closed. The average production capacity of spin mills in Gujarat is also less than 50%. Analysts pointed out that the profit margins of small spinning mills were most affected, while the profits of large and medium-sized spinning mills were better controlled, or only declined slightly.
In addition, there is news that some orders from the Indian home textile industry have flowed to Pakistan. Due to the depreciation of the Pakistani rupee against the US dollar, European and American traders are currently more interested in purchasing textiles from Pakistan.
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