The entire textile value chain’s exports have suffered as a result of a global trend towards recession and a rise in cotton prices.
Confederation of Indian Textile Industry (CITI) statistics shows that in April of this year, compared to the same month last year, textile exports decreased by 20 per cent and apparel exports by 23 per cent. According to CITI, India’s textile exports decreased to US $ 1,540 million in April 2023 from US $ 1,942 million, while clothing exports decreased to US $ 1,210 million from US $ 1,574 million. During the same time period, exports of all textile products decreased by 12.69 per cent.
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Fresh orders haven’t been placed due to declining demand in both the domestic and global markets, and as a result, manufacturers are struggling with a liquidity crisis and an uptick in inflationary pressures.
“The overall economic scenario across the globe has weakened prospects for exports from India for both apparel and textiles. As the demand is less, fresh orders are not being placed. Moreover, fluctuation in cotton prices has also affected the industry in terms of increasing production costs,” said a senior member of Clothing Manufacturers’ Association of India (CMAI).
There’s a huge inventory pile-up, say yarn makers. Besides, price fluctuations in cotton have affected demand from textile industry players.
Gaurang Bhagat, president of Maskati Cloth Market Mahajan, the apex body of textile traders of Ahmedabad, said that due to the high cost of cotton, textile exports have suffered over the past year. Although there is a good cotton crop, the slow arrival of cotton makes it more expensive than what is offered on the global market.
