Textile Industry Set To Strike Back With Low Raw Material Costs

Author: MP Rana

The miserable times for Indian textile industry, which had hitherto hit by declining demands at the international markets, are seemingly over with substantive price cuts in important raw materials.

International markets are sliding down due to the current recession in world economy, leading to massive price cuts in useful raw materials for textile industry, including cotton, viscose staple fibre, and polyester.

According to the sources, cotton prices in global markets have plunged considerably by 18.09 percent, whereas the cost of polyester has dropped by 27 percent in China, as against the same period a year back.

Analysts stated that the price cuts would not explicitly help the economy, owing to falling rupee against US dollar that would affect the profitability from imports, but it could help the textile industry in procuring the required raw materials cheaply.

The sources portrayed a declining trend of textile imports by the US from India, with Indian textiles making a dismal 5.5 percent of textiles imported to US in 2007, and the figure is set to decline further due to the ongoing slump US economy is facing.