Indian textile market going through a temporary phase of slothfulness

Although India saw demand for cotton yarn from China on a declining trend and the European Union market for fabrics and made-ups mired during the last four months. However, the demand for textiles would be picking up soon in India with the festival season just round the corner.

Drop in export demand for cotton yarn and the slowdown in the domestic market are only temporary and yarn manufacturers should not panic because of the “temporary slothfulness in the market, according to chairman of Southern India Mills’ Association (SIMA) T. Rajkumar.

This has brought down the demand for yarn and cotton yarn prices have fallen by Rs. 10 to Rs. 25 a kg.

However, the garment sector has grown and the yarn needs of garment-making units have increased.

It is observed that the market is normally dull during summer. This year, delayed monsoon, drop in capacity utilisation in weaving clusters and processing units in Maharashtra and Gujarat have all had an impact.

In a couple of months, prices of cotton and yarn are expected to become stable which will give a competitive edge to the domestic units. In the meantime, the market sentiment has started improving across the textile value chain and enquiries have started flowing in. The rates of enquiries are going up.