The textile industry in Gujarat is anticipating a strong recovery in demand since the prices for cotton have stabilised around Rs. 61,500 – 62,500 per candy price range.
The lower volatility in the prices of cotton has increased confidence in the domestic industry and the number of orders have substantially increased since January 15.
GujCot Association Secretary Ajay Shah said, “We have witnessed strong arrival of raw cotton at market yards in the last fifteen days, with all-India numbers of around 1.50 lakh bales. In Gujarat, around 45,000 bales arrive every day, while in Maharashtra, this number is about 40,000 bales.”
He further added that 35 lakh bales of cotton have arrived in Gujarat, with the strong supply leading to a stabilisation of cotton prices for over a week. This is perhaps the first time that cotton prices have remained stable and as a result, confidence in the market has been boosted.
There was a substantial demand seen in the textile industry as a result of the festival and wedding seasons and newer demand emerged after 15th January due to low inventory.
“Domestic demand has increased in the last few days with stable cotton prices,” said Bharat Chhajer, Former Chairman of Powerloom Development and Export Promotion Council (PDEXCIL).
He added that textile processing units and weaving units were operating at over 60 per cent capacity and that due to the Chinese New Year, there is a belief that the demand will increase.
