In the past week, demand for yarn in India has remained insufficient and prices have fallen. China’s RMB exchange rate has significantly restricted China’s demand for imported yarn, which is not good news for Indian yarn mills.
Although international cotton prices and Chinese cotton prices have fallen, Indian cotton prices have remained unchanged. Insufficient external demand and unreduced production costs will shrink the operating profits of Indian yarn mills. If Indian cotton yarn wants to compete in the international market, but the cost of raw materials has overwhelmed them.
Affected by India’s MSP price, Indian cotton mills believe that cotton prices will not fall in line with the international market.
