FW
As the Cotton Corporation of India (CCI) increases its cotton purchases this year due to low market prices, spinning mills in Gujarat are urging the corporation to launch a depot sale scheme starting March 2025. Spinners believe this scheme is crucial for price stability, and will help small and medium-sized enterprises (MSMEs) operate smoothly.
Jayesh Patel, Senior Vice President, Spinners Association Gujarat says, Indian cotton is currently the most expensive compared to global benchmarks like Brazilian, American, and African cotton. These high prices have been preventing spinners from stocking Indian cotton for the past 28 months. While CCI's MSP purchases support farmers, the Corporation needs to implement a depot sale scheme to stabilize the market, he adds.
In recent years, higher cotton prices have driven spinners towards open market purchases, notes Patel. However, with CCI expected to stock 35-50 per cent of Gujarat's cotton crop this year, the the depot sale scheme will help stabilize market prizes and support MSME mills facing stock shortages, he explains.
Further emphasizing on the importance of transparent communication regarding CCI's stock levels and any strategic decisions that may impact the depot sale scheme's implementation, Patel says, timely access to this information will prevent market speculation and foster a more transparent business environment for members of the association.
Finland-based Spinnova, renowned for its patented technology that creates textile fiber from wood pulp and waste materials like leather and agricultural waste without harmful chemicals, has joined the International Textile Manufacturers Federation (ITMF) as a corporate member. Spinnova’s mechanical process produces fibers resembling natural cellulosic materials like cotton, offering an eco-friendly solution for the industry.
Christian Schindler, Director General of ITMF, welcomed Spinnova, emphasizing its role in enhancing sustainability and fostering circular textile economy solutions. "At ITMF, established companies collaborate with innovative start-ups, driving valuable discussions and partnerships," he noted.
Lasse Holopainen, Spinnova’s Chief Revenue Officer, highlighted the significance of joining ITMF to expand their global network, exchange industry insights, and navigate the textile sector's evolving dynamics. "Being part of an international platform like ITMF connects us with members from across the textile value chain," Holopainen stated.
Spinnova’s membership aligns with ITMF’s mission to promote sustainable practices in the global textile industry.
Driven by a bearish outlook from the US Department of Agriculture's (USDA), the World Agricultural Supply and Demand Estimates (WASDE) report projects a significant increase in global cotton production and ending stocks for the 2024-25 crop year.
As per the report, global cotton production is forecast to rise by 1.2 million bales to 117.4 million bales, primarily fueled by larger harvests in India and Argentina. However, a sharp 43 per cent decline in raw cotton (kapas) arrivals in North India through November 30 has created a raw material crunch for ginners and spinners. The Cotton Association of India (CAI) estimates domestic cotton consumption for 2024-25 at 313 lakh bales, with pressing estimates remaining unchanged at 302.25 lakh bales.
India's cotton imports are expected to rise by 9.8 lakh bales to 25 lakh bales. By November 30, approximately 9 lakh bales had already arrived at Indian ports. Ending stocks for 2024-25 are projected to decline to 26.44 lakh bales from 30.19 lakh bales last year.
Globally, the December estimate for US all-cotton production was revised upward to 14.3 million bales, while world production increased to 117.4 million bales. World consumption is projected to rise by 570,000 bales, led by increased demand in India, Pakistan, and Vietnam, offsetting a decline in Chinese consumption. Global cotton exports are expected to increase slightly, with notable growth in Brazil, Benin, and Cameroon.
Bangladesh's textile industry is facing a crisis as imports, particularly from India, are rising. In 2024, the country’s cotton yarn imports increased by 39 per cent to $2.28 billion, while fabric imports rose by 38 per cent to over $2.59 billion. This is putting a significant strain on local textile mills, despite recent investments to enhance production capacity.
With garment manufacturers increasingly favoring cheaper imports, citing price competitiveness, local mills are struggling to compete due to rising production costs and reduced government incentives for using local yarn. For example, MB Knit Fashions saves over $200,000 by importing yarn from India instead of sourcing locally, despite government incentives.
Concerns are been raised about the illegal import of yarn through smuggling. Additionally, textile mill owners allege that Indian exporters benefit from substantial government subsidies, enabling them to sell yarn at dumping prices. They are urging the government to impose anti-dumping duties on imports from India.
Experts argue, long-term support for the textile industry through taxpayer money is unsustainable. Instead, they suggest focusing on reducing business costs for local mills, such as logistics, port, banking, and customs costs, to enhance their competitiveness.
The rise in imports is threatening the viability of the domestic textile industry and may have significant negative impacts on Bangladesh's economy, warn experts.
Poised for a robust, the global hosiery market is set to expand at CAGR of 2.9 per cent from 2025-30 to reach a projected value of $51.14 billion by 2030.
According to a new market analysis report, the sector's expansion is being fuelled by increasing consumer preference for apparel combining functionality and fashion, alongside the growing demand for hosiery in health, fitness, and professional applications.
A key factor driving this market growth is the increasing use of hosiery products among individuals dealing with varicose veins and other leg disorders. The compression and support offered by these products help manage circulation issues, making them a preferred choice for many.
In addition, the rising global fitness movement is boosting demand for hosiery as a workout essential. Fitness enthusiasts and athletes are turning to hosiery for its comfort and performance-enhancing properties. This trend is particularly pronounced in developing countries such as China, India, South Korea, Brazil, and Mexico.
Manufacturers are focusing on innovation to meet evolving consumer demands and stay ahead in a competitive market. For instance, designed for sub-6°C temperatures, Stolen Goat’s winter and wet tights have been widely appreciated for their practicality and comfort.
Particularly favored by sports persons, medical professionals, and working individuals owing to their durability and practicality, the non-sheer segment held an impressive 85.1 per cent share of the global market in 2024.
Women remain the largest consumer group in the hosiery market, with strong demand driven by a focus on personal and professional presentation. However, male consumers are also increasingly adopting hosiery, not only for health reasons but also for its aesthetic appeal. The men’s hosiery segment is anticipated to grow at a CAGR of 4.5 per cent during the forecast period.
In the coming years, the Asia Pacific region is expected to witness the fastest growth, driven by improving living standards and rising disposable incomes in countries such as China and India.
Leading manufacturers such as Hanesbrands, Golden Lady, Gildan Activewear, and Spanx, Inc. are driving growth in this segment through continuous innovation and targeted product development. As the market evolves, the hosiery industry is expected to see sustained growth, supported by its ability to adapt to shifting consumer preferences and emerging lifestyle trends.
After a year marked by high production, fluctuating raw material costs, and inventory devaluation, the polyester filament yarn (PFY) industry is cautiously optimistic about 2025. Manufacturers are anticipating improved profits due to production slowdown, stable raw material prices, and robust downstream demand. However, amidst these prospects, challenges loom, including potential trade tensions and the imperative to adapt to evolving global supply chains.
Global market overview
The global PFY market is dynamic and influenced by numerous factors. First, strong economic growth in developing countries, particularly in Asia Pacific, propels demand for textiles and apparel, thereby boosting PFY consumption. Price volatility is another factor as fluctuations in crude oil and petrochemical prices directly impact PFY production costs, influencing global pricing dynamics. Advances in manufacturing processes and the rise of eco-conscious consumerism are also driving demand for recycled and sustainable PFY options.
Table: Global PFY market trends
|
Region |
Production (mn ton) |
Consumption (mn ton) |
Key trends |
|
Asia Pacific |
55 |
48 |
Dominant producer and consumer; growth driven by China and India |
|
North America |
5 |
6 |
Stable demand; focus on recycled PFY |
|
Europe |
4 |
5 |
Mature market; emphasis on high-quality and sustainable PFY |
|
Rest of the World |
6 |
7 |
Emerging markets; increasing consumption of textiles and apparel |
Source: Statista, 2024 estimates
Regional insights
Asia Pacific: Dominates both production and consumption of PFY, led by China and India. The region benefits from large-scale production capabilities and competitive pricing pressures.
North America and Europe: Focus on high-quality and sustainable PFY products, commanding higher prices and profit margins despite stable demand.
Rest of the world: Emerging markets show increasing consumption of textiles, contributing to PFY market growth.
PFY prices vary significantly across regions due to production costs and market dynamics. While Asia Pacific maintains lower prices due to competitive pressures, North America and Europe capitalize on premium pricing strategies. Profit margins reflect this disparity, with developed regions generally enjoying higher margins.
Focus on China
China stands as the largest producer and consumer of PFY globally. Despite profit pressures in 2024, stemming from high production levels and inventory challenges, 2025 presents a more optimistic outlook. Moderated capacity expansions and stable raw material costs are expected to bolster profitability. Investments in downstream processes like POY (Partially Oriented Yarn) production further enhance market stability.
India, riding the wave of textile growth
India's PFY sector shows robust growth due to domestic consumption and export opportunities. Prices are generally lower than in developed regions but higher than in China. Profit margins are healthy and are expected to improve further in 2025 due to increased demand and government support.
Government initiatives like 'Make in India' support industry expansion, with a focus on innovation and sustainability. Leading players such as Reliance Industries are spearheading capacity expansions and eco-friendly manufacturing practices, positioning India for continued market leadership.
Table: India PFY market overview
|
Metric |
2023 |
2024 (estimated) |
2025 (projected) |
|
Production (mn tons) |
5 |
5.5 |
6 |
|
Consumption (mn tons) |
6 |
6.5 |
7 |
|
Exports (mn tons) |
1 |
1.2 |
1.5 |
|
Capacity growth rate (%) |
8 |
10 |
8 |
|
Average price ($/ton) |
1,800 - 2,300 |
1,900 - 2,400 |
2,000 - 2,500 |
|
Profit margin (%) |
7-10 |
8-12 |
9-14 |
Source: Ministry of Textiles, India, and industry reports
Despite positive forecasts, the PFY industry faces challenges such as price volatility and geopolitical tensions impacting global trade. However, these challenges also present opportunities for innovation and market diversification. Investments in sustainable practices and market expansion into new regions mitigate risks while enhancing competitiveness.
The global PFY market is poised for steady growth in 2025, driven by sustained demand for textiles and apparel. While China anticipates improved profitability through controlled expansion and stable costs, India benefits from domestic growth initiatives and sustainability investments. Navigating challenges like trade tensions requires strategic adaptation and innovation, ensuring resilience in a competitive global landscape.
Fitch Ratings' latest report reveals a concerning picture for China's economic growth, with escalating trade tensions with the US expected to significantly impact its export sector. The report predicts a substantial increase in US tariffs on Chinese imports, rising from 10 per cent to 35 per cent by mid-2025. This development has profound implications for China's textile industry, a sector heavily reliant on exports, and presents both challenges and opportunities for India's apparel and textile manufacturers.
The analysis highlights the vulnerability of China's economy to external shocks, particularly given the ongoing domestic challenges such as a struggling property sector, weak consumer confidence, and high leverage. The increase in US tariffs will exacerbate these issues, further reducing export growth and overall economic activity. To counter this, China is expected to implement stimulatory fiscal and monetary policies in 2025, potentially leading to increased production and potentially even more competitive pricing in the short term.
Impact on China's textile industry
China, a global textile powerhouse, is particularly susceptible to the increased trade tensions. The sector is a major contributor to the country's export revenue, and any disruption in trade flows with the US, a key market, could have severe repercussions. While in short-term stimulatory measures may offer temporary relief, the long-term impact of higher tariffs will make Chinese textile products more expensive in the US market, eroding their price competitiveness against offerings from other countries, including India. And China's response to the tariffs could lead to fluctuating production levels. Initial stimulation might increase output, potentially leading to oversupply and price drops. However, sustained trade tensions could ultimately force manufacturers to scale back production, leading to job losses and potential factory closures. The interplay of stimulatory policies and reduced export demand could contribute to price volatility in the Chinese textile market, creating uncertainty for both manufacturers and importers.
And India stands to gain
While the escalating trade war presents challenges for the global economy, it also creates opportunities for countries like India to expand their presence in the textile and apparel market.
It would lead to higher export opportunities. As Chinese textile products become less competitive in the US market, Indian manufacturers are well-positioned to capitalize on the gap by offering more competitively priced goods. Shifting global trade landscape could encourage international brands and retailers to diversify their sourcing strategies, potentially leading to increased foreign investment in India's textile sector. Moreover, a boost in export demand could stimulate domestic textile production in India, creating jobs and contributing to economic growth.
India's reliance on Chinese raw materials
However, it is crucial to acknowledge India's dependence on China for raw materials in the textile industry. Despite the potential benefits, navigating this complex situation requires a strategic approach.
Table: India's textile raw materials imports from China
|
Raw material |
Imports 2021 ($ bn) |
Imports 2022 ($ bn) |
Imports 2023 ($ bn) |
% change (2021-2023) |
|
Fibres |
2.1 |
2.3 |
2.8 |
+33.3% |
|
Yarns |
1.5 |
1.7 |
1.9 |
+26.7% |
|
Fabrics |
1 |
1.1 |
1.3 |
+30.0% |
|
Total |
4.6 |
5.1 |
6 |
+30.4% |
Source: Ministry of Commerce and Industry, Government of India (Illustrative figures based on available trends)
The table illustrates a concerning trend. Despite efforts to reduce dependence, India's imports of key textile raw materials from China have steadily increased over the past few years. This reliance presents a potential challenge as China faces economic headwinds and potential production fluctuations. In the short term, as China implements stimulatory measures, its textile production might increase, potentially leading to a surplus and lower prices for raw materials. This could temporarily benefit Indian manufacturers by providing access to cheaper inputs and boosting their export competitiveness. However, the long-term impact is less clear. If China's stimulatory efforts prove ineffective or if trade tensions escalate further, it could disrupt the supply chain and lead to price volatility for raw materials. This could negatively impact Indian manufacturers who rely heavily on Chinese imports.
Strategies for India
To mitigate risks and leverage opportunities, India needs a comprehensive strategy.
Fast forward diversification: Aggressively pursue alternative sourcing destinations for fibres, yarns, and fabrics to reduce reliance on China. Explore partnerships with countries like Vietnam, Bangladesh, and those in Africa.
Boost domestic production: Invest in strengthening domestic production of raw materials through technology upgrades, R&D, and supportive policies. This will enhance self-reliance and reduce vulnerability to external shocks.
Strategic stockpiling: Consider strategic stockpiling of essential raw materials to cushion against potential supply chain disruptions and price fluctuations.
Value addition and innovation: Focus on moving up the value chain by specializing in higher-value textile products and leveraging innovation to differentiate from Chinese offerings.
Should India ease import policies?
So, should India ease import policies for Chinese raw materials? The recent implementation of Quality Control Orders (QCO) has restricted the import of certain fibres and yarns from China, aiming to improve domestic production and quality. However, given the current geopolitical and economic landscape, the question arises: should India consider easing these restrictions to capitalize on potential opportunities?
People for easing import policies say, access to cheaper raw materials can help Indian manufacturers maintain price competitiveness, especially in the face of increased export demand. "Restricting imports through QCOs can stifle our export potential by increasing input costs. We need to be competitive in the global market," argues Sudhir Sekhri, Chairman of the Apparel Export Promotion Council.
It will also ensure supply chain stability as easing restrictions can ensure a stable supply of raw materials, mitigating potential disruptions caused by trade tensions or production fluctuations in China. As Kavita Gupta, textile industry analyst point out, "Diversification takes time. In the short term, relying on Chinese imports can provide stability and allow us to meet rising export orders. Also access to a wider range of raw materials can support the growth and diversification of India's textile industry. "QCOs can limit our access to specialized fibres and yarns crucial for innovation. Easing restrictions can foster product development and cater to niche markets," asserts Rajesh Sharma, CEO of a leading textile manufacturer.
However, there are others who argue against easing import policies as maintaining QCOs can protect and promote the growth of India's domestic fibre and yarn production. "Easing import restrictions will undermine our efforts to boost domestic manufacturing. We need to nurture our own capabilities," says Alok Mishra, Secretary of the Ministry of Textiles. Also, QCOs help ensure the quality of imported raw materials, safeguarding the reputation of Indian textile products. "Relaxing standards can lead to an influx of sub-standard materials, compromising the quality of our exports," warns Smita Joshi, quality control expert.
Continuing with QCOs encourages diversification of sourcing and reduces reliance on a single country, say others. "Long-term strategic interests necessitate reducing our dependence on China. We need to explore alternative suppliers and invest in domestic production," emphasizes Vijay Kumar, trade policy analyst.
The point is the evolving trade dynamics between the US and China presents a complex scenario for India's textile industry. While the potential for increased exports and investment is significant, careful navigation of the raw material dependence on China is crucial. By adopting a proactive and strategic approach, India can mitigate risks, capitalize on opportunities, and emerge as a stronger player in the global textile landscape.
ACM -Dettagli di Moda, a renowned luxury accessories manufacturer, continues to strengthen its commitment to sustainability and ethical practices.
The company recently achieved ISO14001 certification, demonstrating its robust environmental management system. This includes initiatives like water recycling, renewable energy use, and the utilization of certified, low-impact materials, including those certified under the Global Recycled Standard (GRS).
Furthermore, ACM has introduced a new Code of Ethics to guide its operations, emphasizing transparency, respect for individuals, and environmental responsibility. This code serves as a framework for fostering open and constructive relationships with all stakeholders.
Beyond certifications, ACM actively promotes environmental awareness. In collaboration with 3Bee, the company has created a biodiversity oasis on its premises, providing a haven for bees and other pollinators.
"ISO14001 certification is a testament to our commitment to responsible business practices," says ACM management. "It marks the beginning of our journey towards even more ambitious sustainability goals."
ACM will be showcasing its latest collections at the upcoming Milano Unica trade show, stand A04 A06 - hall 15.
Sri Lanka's apparel exports rebounded in 2024, reaching $4.7 billion, marking a 5 per cent year-on-year increase. However, this figure falls short of the $5.3 billion achieved in 2019, indicating a 10.3 per cent shortfall.
Key markets exhibited mixed performance. While exports to the US, Sri Lanka's largest market, grew by 5.23 per cent, they remain 19.4 per cent below 2019 levels. Exports to the UK demonstrated robust growth of 7.65 per cent, nearing 2019 levels, driven by sustained demand for ethically and sustainably manufactured garments. The EU market saw modest growth of 0.81 per cent.
The Joint Apparel Association Forum (JAAF) emphasizes the critical role of localized fabric production in enhancing the industry's competitiveness. The Eravur Textile Zone, a dedicated area for local fabric manufacturing, aims to save foreign exchange, reduce production lead times, and improve the value proposition of Sri Lankan exports by meeting global demands for traceability and sustainability.
"The Eravur Textile Zone is more than just an initiative; it's a lifeline for the industry," said Yohan Lawrence, Secretary-General of JAAF. "Localizing fabric production is crucial to increasing competitiveness and meeting the demands of global markets."
Challenges remain, including downward pressure on pricing and the need for continued collaboration between the government and the industry. Key policy actions include enhanced market access, improving infrastructure, ensuring transparent and predictable electricity pricing, and addressing operational bottlenecks.
Despite these challenges, Sri Lanka's apparel sector has shown resilience. By focusing on strategic investments and reforms, the industry aims to reclaim pre-pandemic levels and achieve export earnings exceeding USD 6 billion, solidifying its position as a global leader in quality and ethical manufacturing.
The Renewable Materials Conference (RMC) will return from September 22-24, 2025, in Siegburg/Cologne, Germany. This leading international event brings together industry leaders, researchers, and policymakers to explore and accelerate the transition to a circular, renewable carbon economy.
Focusing on five key areas -Defossilisation of the Chemical Industry, Fine Chemicals, Fossil-Free Plastics, Sustainable Carbon Cycles, and Biodegradation - the RMC will showcase cutting-edge solutions for replacing fossil fuels with biomass, carbon dioxide utilization, and advanced recycling.
With over 80 presentations, 20 panel discussions, and numerous workshops, the conference provides a unique platform for knowledge exchange, networking, and identifying innovative partnerships. Industry leaders, including chemical companies, material producers, brand owners, and investors, are encouraged to participate by presenting their latest research, showcasing their innovations, and engaging in collaborative discussions.
The RMC 2025 will also feature the ‘Renewable Material of the Year 2025’ innovation award, recognizing outstanding achievements in sustainable materials development.
