Price Fluctuations Hit the Textile Industry Amid Global Volatility

The textile industry is navigating turbulent times marked by price imbalances and a slowdown in demand, with hope for a recovery pinned on global market dynamics by Q1 2025.

Cotton prices have fallen sharply, with Cotton No. 2 Futures for March 2025 trading at 69.17 cents, a decline from 71.93 cents in November 2024. This decrease reflects weaker demand, even as polyester continues to dominate, making up 65% of global fibre usage in 2023.

Despite lower cotton prices, mills remain hesitant to purchase, hindered by weak demand for finished textile goods. Spinning mills, especially in India, are under financial strain, with yarn prices failing to cover costs.

Sri Kannapiran Mills’ Director, Seenivasahan Ramasubbu, reported a Rs. 28 per kg loss for 40s Ne carded yarn, as weavers resist higher prices.

Sectoral imbalances are evident, with weavers and retailers faring better than spinners and ginners. Experts, including Krishnasamy Gandhiraj, General Manager at Lakshmi Card Clothing, stress the need for government intervention, improved labour availability, and productivity boosts to stabilize the industry. As the textile sector waits for demand recovery, stakeholders call for strategic support to navigate this challenging period.