With Eid-ul-Fitr fast approaching, the textile market in the city is abuzz with activity, fueled by high retail demand and indicating a bullish trend for the upcoming festival season.
Traditionally, order cycles run around four months ahead of each season, and processing houses in Ahmedabad, a prominent cotton textile hub, boast capacities capable of producing over 3 crore meters per day.
Gaurang Bhagat, President of Maskati Cloth Market Mahajan, noted the significant increase in orders from various states, signaling promising times for the industry.
Despite concerns over the new MSME payment rule, which emerged earlier this year, the textile industry has seen positive demand trends. Moreover, the relatively low cotton prices ranging from Rs 55,000 to Rs 61,000 per candy have further bolstered demand.
The drop in raw material prices has enabled manufacturers to produce fabrics more affordably, leading to an increase in volume and benefiting traders. This surge in demand has been particularly notable for shirting, suiting, and dress materials, indicating a positive market trend.
As the situation surrounding the new payment rule stabilizes, there is optimism that demand will continue to thrive during the festival season. Inventory levels are low throughout the supply chain, further contributing to the revival in demand.
Furthermore, the denim sector, a crucial segment of the textile industry, has also experienced a resurgence in demand. Denim plants are operating at approximately 90 per cent of their production capacities, signaling a rebound in the industry following a period of sluggish demand.
