In the post-Covid-19 lockdown scenario, the demands for various textiles and clothing products have increased steeply. India, being one of the successful countries in alleviating Covid-19 pandemic, textile and clothing sector could get enormous opportunities immediately after the lockdown from all over the world. The Aatma Nirbhar Bharat relief measures have greatly helped the textile industry to recover from the unforeseen recession on a fast track. Since the inventory pipeline got drained out during and immediately after the Covid-19 lockdown period, it has caused a demand supply mismatch in the textile value chain. The steep increases in the raw material and various other input costs to the tune of 20 to 30 percent have made the intermediary products expensive, causing difficulties for the finished product manufacturers to meet their long-term commitments. Hence, the downstream sectors of the textile value chain have been demanding for stability in the yarn prices. However, mainly due to the high volatility in the raw material prices, the spinning sector at times has not been able to bring about stability in the yarn prices. Though, the volume of yarn export continues to remain much lower than the normal export levels, the downstream sectors have reported about shortage of yarn supplies.
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