The textile industry is grappling with price imbalances and a demand slowdown across sectors, with hopes pinned on global demand recovery by the end of Q1 2025. Experts highlight the need for sectoral balance and enhanced demand to stabilize the industry.
Cotton prices have experienced a sharp decline, with Cotton No. 2 Futures for March 2025 trading at 69.17 cents, down from 71.93 cents in November 2024. This drop reflects weak demand, even as polyester consumption continues to dominate the market, accounting for 65% of total fibre usage globally in 2023. Despite falling cotton prices, mills are hesitant to purchase due to poor demand for textile goods.
Spinning mills, particularly in India, are under pressure as yarn prices fail to meet breakeven levels. Sri Kannapiran Mills’ Director, Seenivasahan Ramasubbu, reported losses of Rs. 28 per kg for 40s Ne carded yarn, with weavers unwilling to pay higher prices.
Sectoral imbalances persist, with weavers and retailers in relatively stable positions compared to struggling spinners and ginners. Experts, including Lakshmi Card Clothing’s General Manager Krishnasamy Gandhiraj, underscore the urgency for government support, improved labour availability, and productivity enhancements to revive the industry.
