Textile exports are booming thanks to declining cotton prices, but a twist has thrown a wrench in the works. Earlier orders placed at higher prices are now facing delivery complications as buyers demand discounts.

Hundreds of containers, including denim and spinning waste, are stuck in limbo. Buyers cite lower cotton prices and payment issues as reasons for withholding delivery. This is impacting mills in Gujarat, where spinner capacity has hit 80%, with export orders and domestic demand rising.

The Spinners' Association Gujarat (SAG) highlights the plight of spinning waste shipments, used in denim, carpets, and towels. About 250 containers, largely from Gujarat, are stranded due to buyer resistance. Vietnam is a major bottleneck.

While new orders at lower prices are flowing in, SAG reports existing buyers seeking discounts before taking delivery. The denim sector is particularly hit, with around 100 containers from Gujarat facing buyer-induced delays due to payment issues.

Exporters are urging the government to establish a legal support mechanism for such situations, calling for an agency to assist in navigating disputes with foreign buyers over price-driven delivery refusals.

In short, a cotton price drop brought unexpected hurdles to textile exports, highlighting the need for resilience in dealing with market fluctuations.