POINTS OF KNOWLEDGE
- Textile industries in Gujarat, India are turning to cheaper fibers like viscose and polyester because
of the high cost of cotton.
- This shift is due to seasonal changes and rising cotton prices, prompting policymakers to work on
industry reforms and MMF.
- Spinners produce at a loss, causing the end of production.
Rising cotton prices are forcing the entire textile value chain in Gujarat, India to switch to cheaper fibers like viscose and polyester. Indian policy makers are working hard to change the cotton industry's focus on synthetic fibers (MMF), but this cannot be done overnight. Current market conditions have forced the company to switch to cheaper cables, and the change in production time has also contributed to this change.
However, consumers have rejected the product due to an unexplained combination of cheap fibers. This indicates that downstream industries and end users may take longer to accept this new normal.
Last year, cotton prices in India hit an all-time high of over ₹111,000 per 356kg candy. However, the underground industry is enjoying the best conditions due to the high cost compared to the global market. Now, the price of cotton rises to almost half that, at ₹ 62,000 per candy. However, India's exports of yarn, fabrics and garments are facing a downturn due to rising cotton prices. Since the start of the current cotton marketing year in October 2022, the price of natural fiber has been higher than that of ICE cotton. According to industry sources, spinners are currently producing without limits or at a loss, so they are forced to stop their production. While the price of cotton remains at an all-time high, the price of yarn, fabric and clothing is not much different. Hence, Indian exporters are facing the challenge of expensive cotton.
Usually, power looms and clothing change their production from cotton to synthetic or mixed fabrics when they receive orders for the coming winter season. However, these sectors were forced to change early to get a break from cotton prices.
Sources from the Ahmadabad market said mid-grade gray mixed fabric was selling at ₹ 70-80 per yard while plain cloth was selling at ₹ 80-90 per yard. This price difference can reach 40%.
Saurin Parikh, chairman of the textile committee of the Gujarat Chamber of Commerce and Industry (GCCI) told Fibre2Fashion: “Cotton prices are so high that the industry has to switch to cheaper fibers. It is not only in Gujarat in India but it is happening all over the world. He explained that Gujarat's textile industry is dependent on cotton fibers, so the trend towards cheaper fibers is visible in the state. Parikh also admits that this is due to seasonal changes, as synthetic fibers are more responsive during winter. The softness and ability to absorb sweat are unique qualities of cotton that cannot be replicated in synthetic fibers. Brands all over the world place large orders for the upcoming winter season between April and June every year, and the industry often switches from cotton to synthetic fibers at this time. However, high cotton prices led to the first change this year.
Ashish Gujarati, former president of the South Gujarat Chamber of Commerce and Industry (SGCCI) said: “The price of cotton is so high that it is not possible for the industry to support itself. Downstream companies are forced to switch to cheaper cables in order to survive in the current tough environment.
However, it may take time for the apparel industry and end users to accept the industry's shift to cheaper cable models. Sources have said that sometimes the declared combination of fiber is cheaper than the agreed limit, causing disputes between buyers and sellers. Although the consumption of synthetic fibers may increase in the industry, India is the main fabric that focuses on cotton, and it will maintain its position in the industry because of its unique characteristics.
