The cost of various woollen and cotton yarn types has decreased by 10 to 15% over the last two months, which is a setback for the apparel industry. Even though the production of winter clothing has recently began, this autumn is being blamed on the current recession that the apparel industry is going through.
Clothing manufacturers and traders believe that a range of problems, such as overproduction and distributor and dealer liquidity issues, are to blame for the slump. Woollen yarn rates are probably going to keep dropping because of the anticipated drop in output.
The costs of all types of woollen yarns and some cotton yarns have decreased over the past three months, according to Harish Kairpal, president of the Ludhiana MSME Association. Each of their rates has decreased by 10% to 15%.
Because of the unused inventory from the previous year and the early start to the winter production this year, he anticipated that the clothing industry will suffer large losses.
Dinesh Kalra, president of the Ludhiana Business Forums, stated that “Even after huge reductions in yarn prices, some of which are available at throwaway rates, there are no takers because there is no clarity on when the orders from distributors and dealers based in other states will pour in.”
