About two dozen new spinning mills are likely to begin production of yarn in the next one-and-a-half year in the western Indian state of Gujarat. However, due to climatic conditions these mills are likely to produce more of coarse yarn. Once production begins in new mills, supply of cotton yarn will improve, while also increasing competition among the mills.
The prices of cotton yarn skyrocketed when economic activities began in September 2020 after a very tough lockdown due to the first wave of COVID-19 in India. The then lucrative yarn prices encouraged spinning mills to increase production capacity and setting up new units. As a result, Gujarat witnessed a trend for setting up new spinning mills.
According to industry sources, about two dozen new mills are being set up in Gujarat, some of which have already started production. According to industry sources, all news mills would have started production in the next one-and-a-half year
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