The domestic cotton spinning industry will recover in FY25, growing 6-8 per cent, rating agency ICRA said on Wednesday.
The recovery will be aided by 4-6 per cent volume growth and mild-realisation gains, the rating agency said.
The estimated recovery would follow two consecutive years of de-growth on the back of subdued domestic demand and falling yarn realisations.
Over two-thirds of the total cotton yarn produced is consumed domestically, where green shoots of recovery are visible from the downstream segments, such as ready-made garments and home textiles.
According to ICRA, cotton yarn exports, which rebounded in FY24 on a lower base, are likely to normalise in FY25.
"While exports will remain exposed to headwinds from sluggish global demand, a shift in sourcing preference away from other countries will offset this impact to an extent," the rating agency said.
It shared that domestic cotton prices, which peaked sharply in H1 FY23 and reached a lifetime high of Rs 284 per kg,
