Desperate because of labour shortage, city's hosiery industry has a reason to smile; due to the decline in prices of crude oil, yarn prices have gone down. Acrylic yarn prices that vary with the crude prices in the international market have gone down by Rs 10 per kilogram. This has come at a time when the manufactures are going to purchase yarn abundantly for the winter stock.
People from hosiery industry admit that the fall in yarn prices will indeed help the industry. Akhil Malhotra, managing director of Shiva Texfab said, "Due to decrease in crude rates, the price of acromethyl has gone down from 2300 dollar per metric tonne to 16,700 dollars per metric tonne which resulted in this decrease of rates of the acrylic yarn. This is the best time the industry to purchase yarn and it will ensure that the industry will have a very good season."
The overall mood in the hosiery industry is good, as people have been expecting a good season this time. "With fall in prices of acrylic yarn, it will inflate the margins of industry that were shrunk down, said Ajit Lakra, president, knitwear and textile association.
If the fall in price the industry will be able to pass on some benefits to the end consumers also but at this point of time people from hosiery industry are not ready to comment as they have to level their own margins.