E-survey on yarn market helps mill sector

Owing to the lack of proper understanding of the yarn market and its trends, the Indian Texpreneurs’ Federation (ITF) took the effort to carry out an online survey in this regard. The Federation realised that there was a total absence of scientific data relating to yarn prices, demand trends and the inventory pile up with the mills.

According to ITF Secretary Prabhu Dhamodaran, “The lack of scientific data on yarn prices, demand trends and inventory pile up with the mills forced us to undertake (this) survey to understand the market better. We did just that by conducting an online survey week-after-week for three yarn markets — Tirupur (hosiery yarn), Ichalkaranji and Bhiwandi (polyester cotton and polyester viscose yarn) and shared the findings with our group members. This exercise, coupled with the ‘Yarn Strategy Meet’ organised by the Federation every month (over the last four months), has helped mills understand the market better.”

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Dhamodaran is of the opinion that several mills have benefitted from this survey, as it helped them to take note of their inventory’s fast moving counts, calculations in negative zones, stock position and the benchmark selling price. “The feedback has been positive. Several mills have managed to fine-tune their production and marketing strategy and this is obvious from the swelling participation in the monthly yarn strategy meets.”

The Indian Texpreneurs’ Federation is now mulling over extending this online survey to warp counts as well. “We are also planning to conduct a survey to understand the raw material price. Today’s market dynamics requires such intelligence; it will help the mill sector choose the right path, because every decision on yarn sales will have a direct impact on the mill’s profitability,” he added.

It may be noted that every textile cluster consumes different types of yarn, and there are at least 150 to 200 mills in every cluster supplying yarn throughout the year.