The prices of several kinds of woollen and cotton yarns have fallen by 10 to 15 per cent over the past two months, which is a setback for the clothing business. Despite the fact that the creation of winter clothing only started a month ago, the recession that the garment sector is currently experiencing is blamed for this autumn.
The recession, in the opinion of clothing producers and traders, is the result of a number of factors, including overproduction and distributor and dealer liquidity concerns. Due to the predicted decrease in output, it is likely that woollen yarn rates will continue to decline.
Ludhiana MSME Association president Harish Kairpal said “Owing to the severe recession in the garment industry, the rates of all types of woollen yarns and some cotton yarns have taken a hit during the last few months. The rate of each of them has fallen by 10 to 15 per cent.”
He predicted that the garment industry will incur significant losses as a result of last year’s unsold inventory and this year’s early start to winter output.
Ludhiana Business Forums president Dinesh Kalra said, “Even after huge reduction in rates of yarn some of which are available at throwaway rates, there are no takers because there is no clarity on when the orders from distributors and dealers based in other states will pour in.”
