Narrating the woes of the industry, sources point out that polyester staple prices had suddenly gone up by about Rs 14 per kg to about Rs 54 per kg (ex-factory) but grey yarn prices had come down as the cloth market was in a bad shape.

Nearly half of the weaving units in Bhiwandi and Bhilwara are virtually closed at present. The blended yarn industry was already in a bad shape. It will be losing more now. Perhaps some more units might be forced to down their shutters.

Every one is really worried. Price realisations are down and the industry has to bear higher raw material costs and fight the competition from the texturising industry.

In the export market, prices are slightly better by 20-25 cents per kg. For instance 30s PV 65/35 yarn now fetches about US $1.95 per kg comparedwith US $1.70 to 1.75 previously, but there is no improvement in profits as costs have risen.

Polyester cotton blended yarn (P/C) 30s count now fetches about US $2.10 compared with US $2.00 to 2.05 per kg previously. Manufacturers do not find export business remunerative. However in order to keep their factories active, they have to effect sales wherever possible. Sales in the overseas markets are possible, but prices are unremunerative.

Actual exports of P/V yarn in April 1999 have been lower by 3.72 per cent in quantity and 26.50 per cent in value, compared with the same in the corresponding month of the previous year. Shipments in April 1999 were of the order of the 2436 tonnes valued at US $4.77 million, compared with 2531 tonnes worth US $6.49 million in the same month a year ago.

Polyester-cotton blended (P/C) yarn did better quantitatively but not value-wise in April 1999 compared with the same month of the previous year. Shipments were better by 10.87 per cent at 2726 tonnes against 2458 tonnes,but price realisations were down by 6.97 per cent at US $5.34 million compared with US $5.74 million.

Exports of blended yarn are made mostly to European and other countries. They do not depend upon East Asian countries. Exporters are, however worried about unattractive price realisations. The main reason for this is that some East Asian countries are offering fierce competition in European markets.

Production of blended yarn in 1998-99 amounted to about 595 million kg against 583 million kg in the earlier year. It might be interesting to note that the union textile ministry had expected the output of blended yarn to reach 630 million kg in 1998-99, but that expectation has failed to materialise and actual production in the year has been just around 595 million kg.