Textile mills, garment units seek measures to improve cotton availability
Textile mills and garment manufacturers in Tamil Nadu are calling for government intervention to stabilize cotton prices and improve raw material availability. Industry leaders cite global demand fluctuations and supply chain issues as primary drivers of market volatility.
Why it matters
Highlights the economic pressures on the textile industry, a major employment sector in India, due to commodity price instability.
With cotton and yarn prices continuing to fluctuate, textile mills and garment units in Tamil Nadu are seeking measures to improve cotton productivity and availability.
Spurt in demand for cotton yarn globally is among the main reasons for volatility in its prices, said Ashwin Chandran, chairman of the Confederation of Indian Textile Industry.
International demand for yarn is better than the last couple of years. Demand for cotton yarn was muted since 2023-24. Demand for textile products across the value chain started picking up last December. Most of the textile units maintained hand-to-mouth stocks for the last years because of the low demand.
Demand for yarn from China and Bangladesh saw an increase and domestic demand for garments is also seeing growth. This has led to better market for yarn. Further, hosiery yarn exports are mainly by the mills in Gujarat and not much from those in Tamil Nadu.
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