July 15, 2024
Industry

Indian Textile Sector Optimistic As Markets Being To Recover

The Indian textile industry, which has been grappling with low demand for almost a year, is now feeling optimistic as the market begins to recover.

One of the main reasons for this new found optimism is the decrease in inventory levels across the entire value chain.

Additionally, China has recently purchased 6,000 tons of cotton yarn, boosting confidence in the market.

Spinning mills in Gujarat, a major textile hub, are now operating at about 80 percent capacity and are anticipating steady demand in the coming months.

The domestic market has also witnessed an improvement in demand, particularly as cotton prices stabilised.

“Gujarat, with its 125 spinning mills and more than 45 lakh spindles of installed capacity, is playing a crucial role in supplying the required yarn,” ToI reported.

“Cotton prices have remained stable at around Rs 55,000-55,500 a candy, and there has been good cotton supply in the market,” Jayesh Patel, Sr. VP of the Spinners’ Association Gujarat (SAG) said.

“Yarn prices, though still slightly high, have also attracted export orders, including China’s recent purchase of about 6,000 tons of yarn,” he added.

Patel stated that the entire textile value chain has experienced low demand due to inventory piling up, but as inventory levels decrease, demand has started to revive.

“Despite some liquidity concerns, industry experts hope that the situation will return to normal soon,” he said optimistically.

Bharat Chhajer, former chairman of PDEXCIL, noted the revival in demand in the domestic market over the past month.

“Traders in Ahmedabad have been purchasing grey fabric with confidence, encouraged by the improving demand scenario. The stability in cotton prices has also played a role in boosting demand,” Chajjer noted.

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