In ICRA’s view, the slowdown in cotton arrivals and

In ICRA’s view, the slowdown in cotton arrivals and

ZCZC
PRI LOC WRG
.MUMBAI WRG41
ICRA-TEXTILE 2 LAST (BCM23)
In ICRA’s view, the slowdown in cotton arrivals and
resultant marginal up-tick in cotton price post November 8 is a short-term phenomenon, which has already started to correct, as farmers have gradually started accepting alternate modes of payments.
Further, the yarn manufacturers are expected to be insulated from this mismatch, given the sizeable inventory maintained by them on an ongoing basis.
The impact of the demonetisation is expected to be felt across the textile value chain in the near term. While on the one hand, the impact is likely to trickle down from a slowdown in spending on apparels and other end products on the demand side.
At the same time, the reduction of currency in circulation is likely to adversely affect the unorganised segment and cotton procurement in the ongoing season of inventory build-up. Nevertheless, this is only expected to be a short-term phenomenon, ICRA said. PTI AP DK BAL
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