Availability and Cost of Raw Materials

Bindu Oberoi

in The Textile Industry in India

Published in print January 2017 | ISBN: 9780199469352
Published online January 2017 | e-ISBN: 9780199087457 | DOI:
Availability and Cost of Raw Materials

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This chapter analyses the movements in the prices of cotton and non-cotton fibres since 1980–81. It attempts to identify the various determinants of prices of these fibres and analyses their impact on the relative price movements during the period. The core argument in Chapter 2 is that the stimulus for the substantial shift from demand for cotton textiles towards synthetic and blended textiles was provided by the changes in the relative price of cotton vis-à-vis synthetic fibres and filament yarns. While the prices of synthetic fibres declined substantially during the 1990s due to reductions in customs duties on the intermediates and raw materials for synthetic fibres, price of cotton continued to remain high as a result of a deep agrarian crisis caused by the movement of international cotton prices and a decline in public investment in agriculture.

Keywords: prices; cotton; synthetic fibres; demand shift; customs duties; intermediates; raw materials; international prices; agrarian crisis; public investment

Chapter.  10996 words.  Illustrated.

Subjects: Economic Development and Growth

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