The textile industry in Gujarat, India, is moving to cheaper fibers such as viscose and polyester due to the high cost of cotton. The shift is partly due to seasonal changes and increased cost of cotton, which is prompting policy makers to work on shifting the industry towards MMF. The production of spinners is running at a loss, leading to a reduction in production.
However, there have been reports of buyers rejecting products due to undeclared blending of cheaper fibers. This indicates that downstream industries and end users may take longer to accept this new normal.
Last year, cotton prices in India hit a record high of over ₹1,11,000 per 356 kg candy. However, the downstream industry was enjoying a better scenario due to price parity as compared to the global market. Currently, cotton prices are hovering at around half of Rs 62,000 per candy. However, Indian exports of cotton yarn, fabric and garments are facing headwinds due to rising cost of cotton. The natural fiber has been priced higher than ICE cotton since the start of the current cotton marketing season in October 2022.
According to industry sources, spinners are currently running production without any margin or loss, hence they are being forced to limit their production. While cotton prices remained high throughout the season, yarn, fabric and apparel prices did not see much recovery. As a result, Indian exporters are facing the challenge of costlier cotton.
Gujarat Chamber of Commerce and Industry (GCCI) chairman textile committee Saurin Parikh said, “Cotton prices are so high that the industry has had to shift to cheaper fibres. This is not just limited to Gujarat and India, but it is Now a global trend. He clarified that Gujarat's textile industry is more dependent on cotton fibre, so the trend towards cheaper fibers is more visible in the state. Parikh also admitted that the trend is partly due to seasonal changes. The reason is, because there is more acceptance of man-made fibers in the winter season.
The soft touch feel and ability to absorb perspiration are unique characteristics of cotton that cannot be replicated in man-made fibers. Global brands usually place bulk orders for the next winter season between April and June every year, and the industry usually shifts from cotton to man-made fibers during that season. However, the high cost of cotton has reversed the situation from earlier this year.
“Cotton prices are so high that it is impractical to sustain the industry using natural fibers,” said Ashish Gujarati, former president of the Southern Gujarat Chamber of Commerce and Industry (SGCCI). The downstream industry is forced to shift to cheaper fibers. So that they can survive in the present challenging scenario.
However, it may take some time for the garment industry and end-users to accept the shift in the industry towards cheaper fibres. Sources said that sometimes the declared mix of cheap fibers exceeds the permissible limit, leading to disputes between buyers and sellers. While the consumption of man-made fibers in the industry may increase, India is a predominantly cotton-centric textile hub, and will retain its position in the industry due to its unique characteristics.
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