07 November 2023, Mumbai
A report by Seshadri Ramkumar, Professor at Texas Tech University, USA, highlights the impact of declining global textile demand on the cotton ecosystem.
Reduced Production and Spinning Margins
India, the second-largest cotton producer, is projected to experience lower output in the upcoming season. Despite reduced cotton prices, spinning margins have dwindled.
Contributors to Demand Slump
Factors contributing to the demand slump include trade imbalances, high power costs in India, and reduced global demand.
Impact on Mill Operations
Unit closures in South India and reduced yarn consumption are consequences of the demand slump.
Industry Experts' Recommendations
Close monitoring of global economic trends, demand patterns, and supply dynamics is crucial before making expansion or inventory decisions.
Hope for Revival
A revival of global demand, particularly during the Christmas season, could provide a much-needed boost to the textile industry.
