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Regional textile industries hit hard due to rising production cost

Regional textile industries have been hit hard due to asurge in the cost of production and increasing competition from international players. Fluctuations in cotton prices and poor quality cotton in the region have also made trade difficult for textile mills. Industry experts said despite a drop in cotton prices, textile mills don't benefit. Textile mill owners, the textile market is in a depressive state and they cannot compete internationally because countries like Bangladesh, Vietnam and Pakistan offer garments at cheaper rates. Rising power costs, higher minimum wages and sluggish demand for garments from overseas buyers has dampened market sentiment. Moreover, strong Indian currency has also affected sales of textile mills in the country. Due to non-competitive prices and a surge in competition from competitors, demand for garments from overseas markets has dropped. Experts say benefits given by governments in rival countries such as subsidies and economic power supply have made their products popular in the global market.MC Rawat, secretary, Madhya Pradesh Textiles Mills Association points out textile industries in the region are reeling under the high pressure of increased labour wages and power costs making their products expensive against rival countries. Textile mills are hesitate to build up stock and conduct business hand to mouth because they lack knowledge about tax slabs under GST. A section of industries said that the lack of clarity on GST has also hurt business in the region.