There is a trend of recessions which is going on the global economy across the world. Thi has increased the cotton process adversely and affected exports in the textile value chain completely.
According to data furnishied by Confederation of Indian Textile Industry (CITI), textile exports have declined by 20% and apparel exports have declined by 30% in April 223. This is corresponding to the previous year. In 2022, the exports fell by $1540 million from $1942 million in India . Similarly, apparel declined from $1574 million to $1210 million.
The overall textile exports deloned too as a result fof which manufacturers are feeling under a liquidity cruch due to a rise in inflationary pressires. There is a huge inventory pile-up besides the price fluctuations on cotton that have affected demand from textile players.
According to a senior member from Clothing Manufacturers Association of India (CMAT), “The overall economic scenario across the globe has weakened prospects for exports from India for both apparel and textils. As the demand is less, fresh orders are not being placed. Moreover, fluctuation in cotton prices has also affected the industry in terms of increasing production costs”.
Accoring to Gaurang Bhagat, president of Maskati Cloth Market Mahajan, apex body of textile traders of Ahmedabad said, “ Our textile exports have been affected adversely for the last one year due to high cotton prices. Cotton crop is goog, but cotton arrival is slow and therefore, our cotton is costlier than what is available in the international market. Adding to this, “Also, export demand is weak due to high inflation in the US and the European markets. Domestic demand is also weak, but we believe that there will be a revival soon as the market is bullish for the upcoming festival season”.