Yarn makers sees ray of hope with fresh queries from China

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Published: March 19, 2020 8:56:28 AM

As per an estimate, Gujarat’s spinning industry accounts for over Rs30,000 crore and more than 70,000 people are working in the spinning mills across the state. 

Yarn makers, coronavirus outbreak, Gujarat, yarn manufacturers, Chinese importers, Spinners Association of GujaratThe spinning industry was bullish following good rain and higher sowing of cotton in Gujarat.

In the overall gloomy situation due to the outbreak of coronavirus, Gujarat-based yarn manufacturers are seeing a ray of hope following fresh inquiries from Chinese importers. Over the past two months, nearly 120 spinning mills across Gujarat have been passing through a tough period in the wake of sluggish international as well as domestic demands, said Bharat Boghara, chairman of Spinners Association of Gujarat (SAG).

“Of the total yarn manufactured in Gujarat, over 30% is being exported to different countries. China is one of the biggest buyers of cotton yarns from India. Due to the outbreak of coronavirus, Chinese traders have completely stopped buying from India as well as other countries,” said Boghara, adding that however, since last one week, there has been fresh inquires from Chinese traders.

According to him, the price of 30 counts cotton yarn was around Rs 205 per kg a couple of months back, which has come down to almost Rs190 to Rs 195 in the export market. Ishwarbhai Ghelani, board member of SAG, said that not only Chinese inquiries but domestic demand has also spurred slightly, which is encouraging for yarn makers in Gujarat and other parts of the country. Hopefully, in the coming one or two months everything will be normalised as the magnitude of the pandemic has reportedly reduced in China, says Ghelani.

As per an estimate, Gujarat’s spinning industry accounts for over Rs30,000 crore and more than 70,000 people are working in the spinning mills across the state.  The spinning industry was bullish following good rain and higher sowing of cotton in Gujarat. As a result, more than 100 lakh bales of crop has been estimated in the current season against the previous year’s 90 lakh bales. Compared to last season’s 23 lakh hectare sowing of cotton, in the current season sowing in Gujarat has gone up to 26 lakh hectare. Gujarat has a lion’s share of 30% in India’s total production of cotton.

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