Rising cotton yarn prices threaten Gujarat textile industry

Rising cotton yarn prices are threatening the textile industry in Gujarat as spinners cut production and shut down units despite Centre’s move to remove import duty. Raw cotton prices are hovering around Rs 1 lakh to Rs 1.15 lakh per candy. This has led to a decline in orders for yarn makers, says Saurin Parikh, President, Spinners Association of Gujarat. Nearly 120 spinning mills in Gujarat are running at little over 50 per cent capacity at present, adds Parikh. He is also the founder of Pashupati Cotspin.

Garment manufacturers in the state, are also witnessing production cuts of up to 45 per cent. It has become extremely difficult to run manufacturing unit in the state due to high fabric and cotton prices, affirms Vijay Purohit, President, Gujarat Garment Manufacturers Association.

Chintan Thaker, President, Welspun Group, opines, the industry needs to ban raw cotton exports to put a brake on the bullish run. PK Sharma, Senior Executive, Chiripal Group adds, inflated cotton prices are a cause of concern considering the fact that it is the most important raw material for most of our finished products.