Gujarat spinners see industry revival

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January 15, 2024 Gujarat’s textile spinners have become more optimistic after grappling with low demand for nearly a year due to decreased inventory across the value chain, China buying 6,000 tonnes of cotton yarn in the last month and several large players placing new orders.

Gujarat’s spinning mills are operating at roughly 80% of their potential and predict stable demand over the coming months. Also, since cotton prices have stabilised over the past month, demand has also improved in the local market. Gujarat boasts over 125 spinning mills with an installed capacity exceeding 45 lakh spindles.

Jayesh Patel, senior vice-president of the Spinners’ Association Gujarat (SAG), said, “Cotton prices are stable at around Rs. 55,000-55,500 a candy and market yard arrivals of cotton have been good. Yarn prices are at Rs. 235-237 per kg (30 count) and while still a bit high, we have seen export orders coming in. China has bought around 300 containers (about 6,000 tonnes) of yarn in the last month. Most of this is being supplied from Gujarat. Many global brands have also started placing orders.”

Patel added that the entire textile value chain has seen low demand mainly due to inventory piling up. As inventory levels fall, demand has revived.

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