Eid-ul-Fitr is around the corner and the city’s textile market is buzzing with activity. Retail demand has been high, leaving the market in a bullish mode for the festival season ahead. The order cycles usually run around four months ahead of each season and processing houses in Ahmedabad, one of the biggest cotton textile hubs in the country, have capacities to churn out more than 3 crore metres per day.
Gaurang Bhagat, president, Maskati Cloth Market Mahajan said, “There has been a good demand ahead of Eid. City’s textile traders are reporting a significant increase in orders from across different states, signalling good times for the industry in the upcoming festival season. Placement of orders and manufacturing process begin around three to four months before any festival and the sentiment is quite encouraging this year.”
He added that despite the new MSME payment rule, which has had traders voicing their concerns and apprehensions since January, the demand trend has been positive for the textile industry. What adds momentum to the demand is the comparatively low cotton prices that have remained in the range of Rs 55,000 to Rs 61,000 per candy.
Industry insiders say the prices are quite low compared to the previous two years. Raw material prices have dropped, allowing the manufacturers to produce fabrics more affordably, passing on the benefits to traders and registering a significant increase in volume.
The Indian textile industry has seen a significant upturn in business. “About four months ago, textile traders began receiving substantial orders for various types of fabrics from different states. This surge in demand has been most notable for shirting, suiting and dress materials, indicating a positive trend in the market.
As the new payment-rule situation becomes normal, we hope the demand will continue for the festival season ahead as well. Inventory levels are low in the supply chain and due to this there is a revival in demand,” said a leading textile process house director.
Additionally, the denim sector, which is a key segment of the textile industry, has also recorded a revival in demand. This recovery is evident as denim plants have ramped up their operations, utilizing approximately 90% of their production capacities. This suggests the industry is bouncing back after a period of slow demand.
January has been soft, but February was slightly better, benefiting from the wedding season and partly from the extended winter season. Further, the management expects March to be better, due to Holi and Eid celebrations, coupled with election spending.
