The 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 newfound optimism is the decrease in inventory levels across the entire value chain. Additionally, China has recently purchased 6,000 tonnes of cotton yarn, boosting confidence in the market.
Spinning mills in Gujarat, a major textile hub, are now operating at about 80% 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.
Jayesh Patel, senior vice-president of the Spinners’ Association Gujarat (SAG), stated that cotton prices have remained stable at around Rs 55,000-55,500 a candy, and there has been a good supply of cotton in the market. Yarn prices, though still slightly high, have also attracted export orders, including China’s recent purchase of 300 containers (about 6,000 tonnes) of yarn.
Patel added 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.
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.
As the textile industry sees signs of recovery both domestically and internationally, the sector is cautiously optimistic about the future and hopes for sustained growth in the coming months.
