Such downward price revision had, according to them, become unavoidable when the overseas suppliers had done so by bringing down their quotations from about US$0.88 per kg to US$0.78 per kg.

Industry sources also point out that this development may halt further closure of blended yarn units. However there were no immediate chances for the revival of about 10 units which were closed earlier. It is admitted that some of the existing units were still limping.

As can be seen from the accompanying table, production of blended yarn in the country in the first four months of 1999 has been fairly satisfactory and the unsold stock has come down, indicating an improvement in offtake.There are two reasons for this. Well equipped weaving units prefer to produce blended fabrics. Secondly there is some improvement in exports ofblended yarn. Apart from some improvement in the domestic offtake, shipments to the overseas markets are now better than before. The main reason for this is that the currencies of Indonesia, Thailand and Korea have recovered to some extent with the result that they are now not able to offer as fierce competition as before to India.

Shippers are, therefore, able to step up their despatches and realise somewhat better prices than before.

There is improvement in demand for Indian yarn in Turkey, Syria, Egypt, Italy and some other countries. Polyester-viscose blended yarn of 30s single now fetches about US$1.95 per kg against US$1.80 or $1.85 per kg previously. Those units which are able to meet quality standards and delivery schedules prefer to export.