In a surprising turn of events, Diwali sales have witnessed a decline in the clothing and garment segment, while other sectors, such as cars, jewelry, mobile phones, and electronics, are experiencing a surge in demand this festive season. The Bhivandi powerloom industry, which caters to the domestic garment market, has decided to take a 20-day hiatus due to the bearish trend affecting the entire textile value chain, including cotton farmers, ginners, and spinning mills.
Rahul Mehta, the chief mentor of the Clothing Manufacturers Association of India (CMAI), stated that subdued sentiments in the domestic garment market have been prevalent since the Durga Puja festival, with the exception of last weekend. “This was the period of lowest demand seen during a festive season after Covid,” he added.
The industry is grappling to decipher the reasons behind the lackluster festive sales, particularly when sectors like FMCG and electronic goods are flourishing. Mehta believes that individuals may not be enthusiastic about purchasing new clothes as they may already have sufficient stock. Alternatively, the allure of buying new electronic items may outweigh that of buying new garments.
The entire value chain, from fiber to fabric, has reported sluggish demand. While the kharif cotton harvest has commenced, farmers are holding back on selling until cotton prices reach Rs 8,000 per quintal, as opposed to the present rates of Rs 7,000-7,200/quintal. Pradeep Jain, chairman of the Khandesh Ginning and Pressing Association, explained that many ginners are facing losses due to subdued demand from spinning mills.
Furthermore, the Indian cotton and yarn export market has not seen much traction due to lower global prices vis-à-vis Indian prices.
The entire textile industry is now engaged in a collective effort to comprehend the factors contributing to this unexpected downturn in the festive clothing market.
