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MY2016/17 and MY2017/18 cotton imports are forecasted to increase to 1.3 – 1.4 million bales in line
with a recovery in the spinning industry. In MY2016/17, spinning mills are expected to run down large
inventories of cotton yarn accumulated during the economic downturn over the past couple of years due
to a surge in domestic demand for black clothes during the mourning period for the passing of King
Bhumibol Adulyadej. Spinners will also likely increase their cotton yarn production capacity utilization
in MY2017/18. While large-scale spinning mills still maintain their competitive edge in domestic and
export markets, small and medium-scale spinning mills struggle with competition from imported cotton
yarn and fabric, particularly from India, China, and Vietnam. more here