Yes, apparel factories are likely to benefit from a decrease in cotton yarn prices. Cotton yarn is a crucial raw material used in the production of textiles and apparel for apparel factories in India, and a decrease in its price can lead to lower production costs for apparel manufacturers.
When the cost of raw materials decreases, it allows apparel factories to reduce their production costs, which can be passed on to customers in the form of lower prices or higher profit margins. This can help apparel manufacturers in India remain competitive in the market and attract more customers.
However, the extent of the benefit will depend on various factors, including the level of competition in the market, the overall demand for apparel products, and the efficiency of the apparel factory’s operations. Additionally, it’s important to note that while a decrease in cotton yarn prices can benefit apparel factories, it may not necessarily benefit cotton farmers, who may face lower revenues as a result of the price drop.