Spinning Mills in Madhya Pradesh Cut Output Amid Low Demand

ENA State 2024-06-04 15:14:18 Indore, Jun 4 (KNN) Spinning mills in Madhya Pradesh have been forced to reduce production by over 10 per cent due to declining demand for yarn and waning competitiveness in international markets. Low orders from textile units coupled with a sharp drop in yarn exports to China and Bangladesh have dampened cotton prices in the local market. Demand for yarn has declined sharply, adversely impacting market sentiment. Most spinning units have cut down shifts and reduced output by over 10 per cent, said Manjeet Singh Chawla, owner of a spinning unit near Dhamnod. Chawla estimates Madhya Pradesh's annual cotton consumption at around 27 lakh bales. Cotton traders report spot market prices in the state hovering around Rs 54,000-55,000 per candy of 356 kg. The low prices have impacted the viability of many spinning mills, prompting production cuts. Rising input costs have further squeezed profit margins in the sector. Animesh Bhargawa, a cotton trader, cited the 45-day payment rule for MSMEs as another factor dampening the garment market and in turn yarn demand. Demand for garments has dropped, so mills reduced yarn purchases on poor orders, he explained, reported TOI. Industry players hope the upcoming season starting July will revive demand. However, the Cotton Association of India's April estimate pegs Madhya Pradesh's cotton crop for 2023-24 at 18 lakh bales, lower than last year's 19.5 lakh bales, indicating persistent supply constraints. (KNN Bureau) 38066 https://knnindia.co.in/news/newsdetails/state/spinning-mills-in-madhya-pradesh-cut-output-amid-low-demand 2024-06-04 15:14:18 knnindia.co.in Spinning Mills in Madhya Pradesh Cut Output Amid Low Demand