Factors like rising production costs and slowing demand from major export markets such as China and Europe are making a negative impact on margins of textile mills in Madhya Pradesh.

While slow economy is the cause of dwindling demand from Europe and China, on the domestic front cost of production has increased by about 10-15 per cent on the back of higher cotton prices, power tariff and labour wages. Madhya Pradesh has about 45 textile mills of which 35 are spinning mills and 10 are composite mills. Cotton prices have risen 5 per cent in a year on expectations of lower output in the country.

Exports of textiles and clothing during April-September 2015 declined by 2.69 per cent at $18.14 billion as compared with the same period a year ago. In 2014-15 exports from India were $41.4 billion against the target of $45 billion.