Textile and garment exporters and manufactures are finding it difficult to capitalise on the sudden spurt in demand for fabrics, garments and other textile products from the exports market. Exporters say, one of the main reasons for the crisis is the steep increase in cotton prices in global market.

Post-Covid, global textile market has opened up numerous opportunities for the Indian textiles and clothing industry mainly due to US sanctions on Xinjiang’s (China) cotton and cotton-based textile products. However, high cotton prices are a deterrent for exporters.

Since the spinning industry is left with no inventory and is struggling to reach pre-Covid levels amid continuing threat of the pandemic, there is a mismatch in supply and demand. There is a significant demand of yarns from garment makers. High demand has pushed the cotton prices northwards.

Perturbed over the high prices, the National Committee on Textiles and Clothing, which includes stakeholders of textile and clothing industry, has sought the intervention of Textiles Smriti Irani through a letter. Since the Cotton Corporation of India (CCI) has become a major player in cotton procurement, pricing methodology is essential to make the entire textile value chain competitive. The letter further states since fabric and garment exporters commit for orders over a longer period, the yarn prices need to be stabilised at least for a month. The CCI also needs to change the prices only on a monthly basis and ensure its stability.