Textile mills in Tamil Nadu are constrained to slow down cotton purchase and consumption In the last quarter of 2022 because of reduced demand in the international market for textile and clothing products.
Last year 132 textile mills in the state operating cumulatively 61 lakh spindles consumed 15.37 lakh bales of cotton between October and December. However, these units according to a survey conducted by their industry association are expected to consume only 10.56 lakh bales during the same quarter of 2022.
Textile mills operate at maximum efficiency if they operate 24/7 but since they operated at 50 percent capacity this year so their efficiency was impacted. The survey reveals that 74 percent of the mills opted to reduce capacity utilization because of low demand. Around 6 percent shifted from cotton to man made fiber to boost production while 11 percent started spinning blended yarn. Tamil Nadu is the largest producer of cotton yarn in India.
Globally the cotton textile goods are picking as Christmas nears. Industry players expect that the demand will pick up for the next quarter. However for the time being the demand for cotton remains subdued.
