03 June 1996 00:00 [Source: ACN]
POLYESTER's share of Indian fibre and yarn consumption has increased from 16.5% in 1992-93 to 22.3% in 1995-96. Further gains at the expense of cotton are expected if the excise duty on fibre and yarn is reduced in the forthcoming budget.
The share of consumption of other synthetics, including nylon and viscose fibre and yarn, have increased from 16.5% to 17.6% over the period.
The share of cotton has declined from 66.9% in 1992-93 to 60.1% in 1995-96.
The real price of partially oriented polyester yarn has dropped by 40%, while that of polyester staple fibre dipped by 29% between 1992 and 1996, industry sources said.
A reduction in excise duty could spur annual demand growth of 18-20%, they believe. Prices are likely to reduce further as overcapacity develops in polyester production.
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