Textile and garment hubs in Indore are experiencing a challenging festive season as manufacturers and retailers struggle with a significant build-up of unsold inventory and weak consumer demand, industry participants said.
Despite the approach of Eid, traditionally one of the busiest periods for garment sales, market sentiment remains subdued. Businesses have adopted a cautious, hand-to-mouth approach to fresh purchases as consumer buying continues to lag. Industry sources said the slowdown has disrupted payment cycles, with receivables stretching up to six months, effectively constraining working capital across the supply chain.
Market representatives noted that many traders are carrying high inventory levels while simultaneously facing rising input costs. Arun Bakliwal of the local cloth market said cotton fabric prices had increased by at least Rs 1 per metre, while denim prices had risen by around Rs 5 per metre, further compressing margins for manufacturers and retailers.
The financial strain has been exacerbated by warehouses filled with unsold goods. Ready-made garment suppliers said prolonged payment delays have limited their ability to introduce new collections into the market. Sheel Porwal, a garment supplier, said payment cycles had been delayed by five to six months, leading to a blockage of funds that has restricted the supply of new products.
Manufacturers said Indore’s ready-made garments are primarily supplied to markets in Tamil Nadu, Andhra Pradesh, Haryana, Rajasthan, Uttar Pradesh, Maharashtra and Gujarat, with nearly half of total shipments directed to southern India. Weak demand across these regions has further weighed on the local industry.
According to Indore Retail Garments Association president Akshay Jain, traders are maintaining limited new stock primarily to retain market presence, even as actual demand remains extremely weak. He added that with bulk orders drying up, the industry is hoping for a last-minute improvement in sentiment to help clear accumulated inventories during the festive period.
