Due to heavy rainfall in Gujarat and Maharashtra, cotton production in these states likely to fall 10 to 15 percent.
Synthetic yarn is subsidiary of cotton and its sales would rise in multiplication as industries will not stop production and go for synthetic yarn.
Apart from flood, synthetic yarn sales will get boost due to July 20 decision to reduce excise duty on key components of synthetic yarn brought to 8 percent from 16.
Performance of synthetic yarn is better than cotton because of its durability, strength and weather resistance.
Rs19,130 crore technical textile sector, which would grow to around Rs29,500 crore in 2007-08, is also opting for synthetic yarns because of its better performance.
So, synthetic yarn is gaining ground over cotton in almost all aspects.
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