ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846
-A A +A

Analysis of Short-Run Price Instability of-Cotton Hank Yarn

Cotton Hank Yarn Murali Patibandla H K Amar Nath This article shows that the lower counts cotton hank yarn, which are used to produce lower quality segment of handloom cloth, are subject to higher short-run price instability than the higher counts hank yarn which are used to produce higher quality handloom cloth. We argue that one of the dominant reasons for the higher price instability of lower counts hank yarn is that the spinning mill sector treats the production of these counts as a residual activity. This, in turn, leads to erratic supply adjustment and high price instability.

Subscribers please login to access full text of the article.

New 3 Month Subscription
to Digital Archives at

826for India

$50for overseas users

Get instant access to the complete EPW archives

Subscribe now

Comments

(-) Hide

EPW looks forward to your comments. Please note that comments are moderated as per our comments policy. They may take some time to appear. A comment, if suitable, may be selected for publication in the Letters pages of EPW.

Back to Top