As the market shows signs of recovering, optimism is growing within the Indian textile industry, grappling with low demand for almost a year.
The decrease in inventory levels across the entire value chain is one of the biggest reasons for particularly spinners to feel optimistic.
“Spinning mills in Gujarat, a major textile hub, are now operating at about 80 percent capacity and anticipating the demand to remain steady in the coming months,” media reports stated.
With its 125 spinning mills and an installed capacity of more than 45 lakh spindles, Gujarat is crucial in supplying the required yarn.
“Cotton prices have remained stable at around Rs 55,000-55,500 a candy, and there has been good cotton supply in the market,” media reports quoted Jayesh Patel, senior vice president of the Spinners’ Association Gujarat (SAG), as saying.
“Yarn prices, though still slightly high, have also attracted export orders, including China’s recent purchase of about 6,000 tons of yarn,” Patel stated.
He 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,” Patel said optimistically.