Cotton Yarn prices are soaring like never before mainly due to cotton availability – demand for cotton clothing is exceeding the supply of cotton yarn. Demand for cotton clothing has gone up because of Covid-19 pandemic forced people to stay home, due to this, clothing consumers needed comfortable clothing like t-shirts, pajamas, cotton sleepwear and loungewear – this was a great advantage for cotton clothing manufacturers in India. Moreover, global clothing consumers had extra income at their disposal because of Covid-19 travel restrictions, did not allow them to spend money on holidays – which was one of the main expenses for a family.
On one hand, demand for cotton clothing went up, on the other hand, cotton yield has come down especially in India for a variety of reasons. This has caused raise in cotton prices, ultimately resulting in garment price increase and a great disadvantage for cotton clothing apparel exporters of India because countries like Vietnam and Bangladesh has zero duty to their cotton imports and also enjoy duty free access to the European markets.
Now that Government of India has completely waived off 10% duty for cotton imports, this is an great advantage for cotton clothing manufacturers in India especially in tirupur because the duty waiver has the possibility to curtail the monthly price increase resulting clothing buyers confirming more orders to the cotton clothing manufacturing factories in tirupur in India.