As per Seshadri Ramkumar, Professor, Texas Tech University, USA recent report, A decline in global textile demand is rippling through the cotton ecosystem, impacting production, prices, and mill operations. India, the second-largest cotton producer, is projected to see a lower output in the upcoming season, while spinning margins have dwindled despite reduced cotton prices.
Factors contributing to the demand slump include trade imbalances, high power costs in India, and reduced global demand. This has led to unit closures in South India and reduced yarn consumption.
Industry experts emphasize the need to closely monitor global economic trends, demand patterns, and supply dynamics before making expansion or inventory decisions. They hope that a revival of global demand, particularly during the Christmas season, will provide a much-needed boost to the textile industry.
