Excessive production of fabric and lower demand has slowed down the growth rate of denim fabric in last 7 to 8 months.
However, analysts believe denim prices may rise to 5 percent in near future.
Due to this unfavorable situation, denim prices in domestic market fell 10 percent, from Rs90 to Rs81.
If the domestic demand increases, prices of denim may go up by Rs3-4 per meter.
Denim demand goes up mainly in the festival seasons which start after July.
Thus, rise in domestic demand will correct denim prices by 5 percent rise, informed Vinod Arora, CMD, Aarvee Denim.
He also added that denim production has increased 45 percent in this year compared to last year from 380 million meter last year to 550 million meters in this year.
On the other hand, consumption growth of the denim in domestic market is very modest and from 250 million to 275 million meters which ultimately lower downs the prices.
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