Ahmedabad: The recent decline in cotton prices has led to better orders for the textile industry. However, earlier orders, placed when cotton prices were higher, are now facing delivery troubles. Sources indicate that approximately 350 containers of various textile products, including denim and spinning waste, are stuck in different countries as buyers seek discounts due to the decrease in cotton prices.
One of the major reasons for the shipment delays is payment issues faced by buyers. The Spinners’ Association Gujarat (SAG) stated that different types of spinning waste, used for denim, carpet, and terry towels, have been affected. Around 250 containers, including 100-150 from Gujarat, have reached different countries but buyers refuse to take delivery for various reasons. Vietnam has particularly faced significant issues with container shipments in recent months.
While the reduction in cotton prices has improved export orders, buyers of finished orders are now demanding discounts before accepting delivery. The SAG has highlighted that the denim sector, in particular, is facing challenges, with containers being held up in African countries due to payment disputes. Consequently, the industry is calling for the government to establish a mechanism and agency to assist exporters when foreign buyers refuse delivery seeking discounts, citing price changes. Despite the obstacles faced, the industry remains hopeful that the stabilisation of cotton prices will continue to boost export orders and domestic market demand.
