Ahmedabad, July 4 (KNN) The falling prices of cotton and cotton yarn is severely effecting the textile houses in Ahmedabad. The Grey fabric arrival at the processing factories has decreased significantly due to many factories working for just four days a week.

The fabric traders are reluctant to buy grey fabric as prices are dwindling and processing houses are thus witnessing decade’s lowest level of demand.

Naresh Sharma, former vice-president of Ahmedabad Textile Processors’ Association (ATPA) said, “Textile processing houses are facing a difficult situation. Grey fabric processing was already low as spinning units had cut production significantly and weaving units ran at lower capacities. Textile processing had become costlier as the cost of lignite and colour chemicals rose drastically.”

“Now, grey fabric arrival has decreased but processing raw materials prices have remained high. Textiles units remained closed due to the Covid pandemic in the last two years, but this is the first time in almost a decade when processing units are staying closed for three days a week because of low demand,” he added.

“Many traders are caught with fabric at higher prices and there is always fear when prices fall. Most fabric players are reluctant to buy at current rates as prices have fallen by more than 10% from the peak. There will be new buying once prices stabilize,” said Former chairman of the powerloom development and export promotion council Bharat Chhajer.

Ahmedabad is one of India’s biggest textile processing hubs with installed capacity of 2.5 crore metres per day.

Cotton prices have shrunk from Rs 1.10 lakh per candy (356 kg) in May to Rs 98,000 now, while 30s combed cotton yarn prices have dipped to Rs 360 a kg from Rs 400. Due to the falling prices, demand which has already been low is now witnessing further falling due to fear.  (KNN Bureau)