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Despite New MSME Payment Rule, Ahmedabad's Textile Market Thrives Ahead Of Eid-ul-Fitr

Updated: Apr 08, 2024 02:38:01pm

Despite New MSME Payment Rule, Ahmedabad's Textile Market Thrives Ahead Of Eid-ul-Fitr

Ahmedabad, Apr 8 (KNN) The textile industry in Ahmedabad, one of India's biggest cotton hubs, is witnessing a bullish trend as the festival season approaches.

Despite the new MSME 45-day payment rule, which had initially raised apprehensions among traders, the demand for textiles has remained robust, signalling good times ahead for the industry.

Eid-ul-Fitr is just around the corner, and the city's textile market is abuzz with activity. Retail demand has been high, leaving the market in a buoyant mode for the upcoming festival season. The order cycles typically run around four months ahead of each season, and Ahmedabad's processing houses have the capacity to churn out more than 3 crore meters of fabric per day.

Gaurang Bhagat, President of the Maskati Cloth Market Mahajan, stated, "There has been a good demand ahead of Eid. City's textile traders are reporting a significant increase in orders from across different states, signalling good times for the industry in the upcoming festival season." He added that despite the initial concerns over the new payment rule, the demand trend has been positive for the textile industry.

Contributing to the surge in demand is the comparatively low cotton prices, ranging from Rs 55,000 to Rs 61,000 per candy, which industry insiders consider quite low compared to the previous two years. Lower raw material prices have allowed manufacturers to produce fabrics more affordably, passing on the benefits to traders and registering a significant increase in volume.

A leading textile process house director remarked, "About four months ago, textile traders began receiving substantial orders for various types of fabrics from different states. This surge in demand has been most notable for shirting, suiting, and dress materials, indicating a positive trend in the market. As the new payment-rule situation becomes normal, we hope the demand will continue for the festival season ahead as well. Inventory levels are low in the supply chain, and due to this, there is a revival in demand."

Additionally, the denim sector, a key segment of the textile industry, has also recorded a revival in demand. This recovery is evident as denim plants have ramped up their operations, utilising approximately 90 per cent of their production capacities, suggesting the industry is bouncing back after a period of slow demand.

(KNN Bureau)


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