The state’s textile industry is once again experiencing output reductions after suffering last year as a result of high cotton prices and weak demand. Many of the city’s textile processing facilities are operating at 40% of their capacity due to the drop in orders, and many have started implementing two-day output cuts. Similar to this, weaving machines are also working at a reduced capacity.
Stocks are accumulating even when spinning mills are operating at about 90% of their capacity. According to experts, spinning mills will eventually cut production for one day each week as well. According to Jayesh Patel, vice president of the Gujarati Spinners’ Association (SAG), “the majority of spinning mills are currently operating at or above 90% capacity. Stocks are accumulating, nevertheless, and demand is weak. Our concern is that spinning mills must halt manufacturing every week for at least one day. India’s spinning mills in the south are only producing at 60% of their capacity, and those in the north have likewise reduced output. Combed yarn currently costs Rs 260 per kg and is not cost-competitive in the export market; even local demand is dwindling.
The whole value chain of the textile industry is impacted by the reduction in retail demand for garments.
