Gujarat's textile industry is buzzing with optimism this season, fueled by a robust arrival of cotton at market yards. Contrary to last year's sluggish pace, farmers are readily selling their crop despite lower prices, leading to a healthy 38 lakh bales (170kg each) reaching market yards from October 1 to January 15.

This translates to an impressive daily average of 45,000 bales, contributing significantly to India's total cotton arrivals of 1.35 crore bales by mid-January. This surge in supply is a welcome change from 2022, when farmers held back their crops, leading to a price spike of Rs 1.10 lakh per candy due to scarcity.

As a positive sign for the entire value chain including farmers, spinners and textile manufacturers, Gujarat will see around 85 lakh bales for pressing this season, says Ajay Shah, Secretary, GujCot Association.

 Contributing to the improved sentiment are stable cotton prices. Good quality raw cotton fetches around Rs 1,450 per 20kg, while the lower quality variety commands Rs 1,250. Processed cotton prices have also remained steady at Rs 55,000 per candy for a month, providing much-needed stability to the industry.

Ensuring better capacity utilisation in the spinning sector, the stable prices improve market conditions for everyone involved from farmers to weavers and garment manufacturers, adds Naresh Sharma, Secretary, Maskati Cloth Market Association. 

Further bolstering the optimism is the recent surge in cotton yarn export orders. The Spinners Association Gujarat (SAG) reports a significant increase in demand since December, indicating a revival of international interest in Indian textiles.

With a strong cotton season underway, stable prices, and rising export orders, Gujarat's textile industry is poised for a significant rebound. The optimism is palpable, and the future looks bright for the state's textile players.