Gujarat’s textile industry witnessed an adverse impact because of fluctuations in the cotton price from October to September in 2022, reveals a report by the GujCot Association.
According to the report, the state’s farmers and mills were both impacted by the changes. Indian raw cotton exports reached a 15-year low of 14.66 lakh bales (170 kg apiece) as a result of the high prices.
New arrivals have started, and analysts predict that difficult circumstances will last for a while. According to the GujCot study, raw cotton exports fell significantly for the majority of the cotton season 2022–2023 (October to September) because Indian cotton prices remained higher than global prices. India shipped 14.66 lakh bales in 2022–2023 (about 42 lakh bales in 2021–22 and 77 lakh bales in 2020–21), according to the data.
GujCot secretary, Ajay Shah, said, “From November 2022 to May 2023, a historic battle unfolded between cotton farmers and mill owners. Farmers held onto their cotton, while mills hesitated to build inventory. Despite the struggle, cotton prices remained relatively steady between Rs 61,000 per candy to Rs 63,000 per candy (356kg), with a brief dip in December last week linked to the NY futures.”
Disappointed cotton growers began to sell their harvest in May, which fueled a decline in cotton prices. Prices varied between Rs 56,000 and Rs 60,000 per candy as a result of this selling pressure, Shah continued, indicating the difficulties farmers experienced and the reaction of the market. Gujarat saw the pressing of almost 92 lakh bales during the cotton season of 2022–2023, which was more than the 74 lakh bales during the previous year.
The new cotton season has begun, and according to the GujCot Association, Gujarat contributes about 25,000 bales per day to India’s daily arrival of over 80,000 bales.
