Cotton Demand Near Decade Peak, Textile Industry Battles Cost Pressures
2024-06-26 23:24:04
Textile Sector Shows Resilience as Cotton Consumption Surges
India’s textile industry continues to demonstrate resilience despite mounting challenges, driven by a sharp rise in cotton consumption. In the 2023–24 marketing season, cotton demand is projected to reach 307 lakh bales, marking the second-highest level in the past decade.
According to estimates, textile mills across the country are operating at 75–80% capacity, reflecting steady industrial activity. Cotton yarn exports have also rebounded significantly, now ranging between 95 and 105 million kg per month—nearly doubling from the lows recorded in 2022.
Cotton production for the current season is expected to touch 325.22 lakh bales. Meanwhile, imports and exports are projected at 12 lakh bales and 28 lakh bales, respectively, with closing stocks estimated at 47.38 lakh bales.
However, the industry faces a key challenge: domestic cotton prices remain higher than global rates. This pricing disparity, coupled with rising production costs, continues to put pressure on profit margins for mill owners.
Despite these constraints, the sector’s strong demand outlook and recovery in exports highlight its growth potential. Going forward, improving cost efficiency and maintaining a balance between production and pricing will be crucial for sustaining profitability.
