Sources explain that besides high cotton prices, "This boom is backed by the reduced plantation accretion. International price of polyester chain has also helped improve margins in term of price."
Another insider also said that value-added products will be a major focus, especially for countries like India and China.
However, Tayal stresses, "The market is not shifting from cotton to synthetic. On the contrary, many of the consumers of synthetic yarn are shifting to cotton yarn. The overall demand for readymade garments manufactured out of cotton yarn has gone up minimum 1.5-fold over last three years and the trend is continuing."
Meanwhile, Malik predicts that this situation will continue for several months and cotton prices are likely to take at least six months to stabilize.
Fibre2fashion News Desk - India
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