A sharp increase in cotton yarn exports due to relatively low domestic prices of raw cotton, and a slight increase in demand for textiles from the US and European markets, has led to a moderate recovery in the country’s labor-intensive textile industry, which remains the same. is left At a low ebb since the pandemic.

Export of readymade garments, cotton, according to the official data of the Idhyam portal Yarn and fabric value for October 2023 to May 2024 stood at $17.9 billion as against $17.5 billion for the same period last year, continuing the downward trend. During this period, yarn exports saw a growth of 51% in terms of volume.

However, the industry Observers and experts warn that the green branches of recovery will not be sustainable if policy support is not backed up. “Demand is still below pre-Covid levels. Also, cotton prices have increased in recent weeks, neutralizing the price advantage for textile manufacturers,” an industry observer said. said

Chairman of Spinners Association (Gujarat) (SAG), Bharat Boghra told FE, “IndiaCotton production this year is better than that of USA and Brazil. This coupled with low Indian cotton prices compared to international prices has led to strong demand for Indian cotton.

However, he issued a cautionary note. “Without an end to geopolitical crises in the near future, consumers are getting used to the current situation, which is reflected by a modest increase in international demand. But this is a short-term trend and importers in Europe and the US are still holding inventories. This trend has reduced the order book cycle of manufacturers to three months compared to the earlier order book cycle of six months.”

Ramakrishnan M, Managing Director, Primus Partners said, “The textile industry is now showing some signs of recovery. Domestic demand has been stable and is expected to remain so. E-commerce penetration is expanding in Tier 2 and Tier 3 regions. is, and impulse or impulse buys are driving more sales.”

“But international unrest, increased cost of production (largely due to a 40% to 50% increase in freight charges), global inflationary trends and muted consumer confidence in economic growth are also affecting the industry. “We expect global demand to remain flat at best or decline slightly,” added Ramakrishnan.

Bhavin Parekh, MD & CEO, Globe Textiles India, a Gujarat-based textile firm catering to global and domestic markets, said, “The China +1 policy as well as behavioral changes in consumption of textiles But the nearly three-month order book cycle reflects lack of confidence in the industry’s prospects for global economic growth.

It may be noted that the newly appointed Textiles Minister Giriraj Singh recently announced that the government is considering inclusion of garments in the PLI scheme for the textile sector and revival of SITP (Scheme for Integrated Textile Parks). is doing He also set a target of $50 billion worth of exports from the textile industry this year.

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