High raw material prices making Gujarat textile industry uncompetitive: GCCI

Ahmedabad, Mar 28 (KNN) With cotton from India being more expensive than from other producers, textile makers in Gujarat are unable to compete against their counterparts in China, Vietnam and Bangladesh.

Rahul Shah, co-chairman of the GCCI textiles taskforce, said, “Our industry has lost competitiveness globally in the last year. Indian cotton used to be at least 5 per cent cheaper than international rates.”

Although the cotton prices have recently cooled down to Rs 61,000 a candy (356kg), in recently from about 45 per cent down from their peak of Rs 1.1 lakh, there is no silver lining for the textile industry, according to a report in the TOI.

Shah pointed out that with the reduced cotton output, prices firmed up significantly. Despite the recent softening, effective rates remain higher than in the international market.

“Low cotton yield is a growing concern. Spinning mills were compelled to stop operations in the unprecedented situation that unfolded last year,” he said.

Recently, the union government has approved for setting up a Mega Integrated Textile Region and Apparel (MITRA) Park at Navsari to help the textile industry grow.  (KNN Bureau)