AHMEDABAD: An overall bearish trend in the major worldwide economy and rise in cotton prices have adversely impacted the entire textile value chain and exports.
According to the data presented by the Confederation of Indian Textile Industry (City), there has been a decline of 20% in textile exports.
Apparel exports in April this year compared to the same period last year up 23%.
In April 2023, textile exports fell to $1,540 million in India from $1,942 million while for apparel it fell to $1,210 million from $1,574 million, according to Citi.
Total textile commodity exports also declined by 12.69% during the same period.
With demand falling in both domestic and international markets, fresh orders have not been placed and as a result, manufacturers are reeling under a liquidity crunch amid rising inflationary pressures.
"The overall economic scenario across the world has weakened the prospects of exports from India for both apparels and textiles. Since demand is low, fresh orders are not being placed. Also cotton prices have fluctuated. Production The industry was affected in terms of increasing costs," said a senior member of the Clothing Manufacturers Association of India (CMAI).
Yarn makers say there is a huge pile of inventory. Besides, the demand has been affected by the volatility in the price of cotton. Textile industry players
Gaurang Bhagat, president of Muscati Cloth Market Mahajan, the apex body of cloth traders of Ahmedabad, said, “Our cloth exports have been adversely affected since last one year due to high cotton prices. Cotton crop is good,
But the arrival of cotton is slow and hence our cotton is costlier as compared to what is available in the international market.
"Additionally, export demand is weak due to high inflation in US and European markets. Domestic demand is also weak but we are confident that there will be revival soon as the market gears up for the upcoming festive season."
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