Recession in Textile Industry

Recession in Textile Industry D P Sharma THE cotton and textile scenario presents a curious blend of many odd elements. A meaningful assessment of the apparently complex scene calls for a proper perception of the link between the two distinct segments of the cotton and textile scene. The demand for cotton is derived from the demand for yarn and cloth. The state of the textile industry therefore has an important bearing on the behaviour of cotton prices. But since cotton itself constitutes a major element in the cost of pro- duction of yarn and cloth, fluctuations in cotton prices have a significant impact on the fortunes of the textile industry. It is simply not possible to make a proper appraisal of the situation obtaining in the cotton market unless one bears in mind the salient aspects of the textile scenario.