Home textile manufacturers are struggling to get export orders. They foresee tough times for almost six months, due to high raw material prices and high inflation in key exports markets such as Europe and the US. The US accounts for more than 55 per cent of India’s home textile exports. The home textile business has seen high inflation affecting demand from the US and Europe. High inflation has resulted in lower inventory for supermarkets in the US and Europe and retail consumer spending has decreased.

Margins have fallen significantly and even after the start of the new cotton season, the situation has not improved. Gujarat is a large manufacturer of home textiles and around 80 per cent of the production is meant for export. However, order levels are currently low. High raw material costs and low demand has affected margins of manufacturers significantly.

Once cotton prices stabilize, Indian players are expected to be in a better situation. This year, Indian cotton was more expensive than global rates so the playing field was not level for Indian manufacturers. But demand is expected to improve in the coming months and exporters are hopeful of getting the advantage of lower cotton prices with strong cotton arrivals this season.

Also, India’s share in the global home textiles market is low, so there is a huge opportunity for Indian manufacturers.