Impact of cotton price fluctuation on yarn market

Cotton is the primary raw material used in the manufacture of many of our products. Costs for cotton yarn and cotton-based textiles vary based upon the fluctuating and often volatile cost of cotton, which is affected by weather, consumer demand, speculation on the commodities market, the relative valuations and fluctuations of the currencies of producer versus consumer countries and other factors that are generally unpredictable and beyond our control. The volatility in the cotton prices hugely affects the yarn prices. Several efforts to date have been sporadic and disjointed, with the issues associated with cotton yarn price volatility often marginalized by policy-makers more focused on interventions in the cotton sector. Interventions to date have included pricing controls, technological improvements, decentralization in the spinning sector, vertical integration and micro-level yarn stock maintenance schemes. The failure of these interventions to make a significant impact points to the need for a more integrated approach to tackling cotton yarn price volatility. The content of this book provide a thorough analysis of the volatility of the cotton yarn prices of different counts.