Linen yarn prices soar in Indian market as demand strengthens

11 Aug '23

2 min read

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Insights

Linen yarn prices in India have surged 15-20 per cent in the last month due to strong demand from the premium garment segment and slow supply, especially from China.
The government's anti-dumping duty on imports from China is under review, and local suppliers dominate the market.
The prices are expected to remain high as the festival season approaches.

Linen yarn prices are soaring in India because of strong demand from the premium segment of the garment industry. The prices have shot up around 15-20 per cent in the last month amid slower supply from foreign countries, especially from China. Linen, a type of premium fibre, is very strong and absorbent and dries faster than cotton.

Linen is very comfortable to wear in hot weather. Linen textiles can be made from flax plant fibre, yarn, as well as woven and knitted fabrics. This fibre is traditionally produced in Western Europe, including countries like Italy and Ireland. Eastern Europe, Ukraine, and Russia are also newer producers of this fine natural fibre. Meanwhile, China is the main supplier of linen yarn due to its manufacturing skills.

According to market sources, linen yarn of 44 LEA or 26 NM is being traded at up to ₹1,250 per kg in the Mumbai market. Last month, it was sold at ₹1,000-1,100 per kg. Similarly, 36 NM linen yarn has reached up to ₹1,600-1,625 per kg, whereas earlier, it was priced at ₹1,300-1,350 per kg.

Mahesh Sharma, a trader and importer of linen yarn from Mumbai, told Fibre2Fashion, “There is a very strong demand from the weaving and garment industry because the festival season is approaching fast. High-end consumers prefer linen garments, considering them as superior to cotton garments.” He said that the government had imposed an anti-dumping duty on the import of linen yarn from China. Now, it is reviewing the trade remedial measures. If it continues with the anti-dumping duty on the premium yarn, availability will be limited in the country.

Domestically, Raymonds and Jai Shree Textiles (a unit of Grasim Industries Ltd) produce linen yarn and other downstream products. They are the dominant suppliers of linen yarn in the country. Sharma said that local companies are commanding the market because the anti-dumping duty made importing unviable.

Trade sources said that linen yarn prices are expected to stay high because demand will not ease until the festival season. The market is witnessing good demand from the premium segment of the garment industry. High-end consumers will come up for buying expensive garments during the festival season. On the other hand, limited imports will not help to improve the supply of the premium yarn. Domestic suppliers will have the power to dictate the market.

Fibre2Fashion News Desk (KUL)

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