With China buying 6,000 tonne of cotton yarn in the last month and new orders being placed by several large players, the textile industry in Gujarat is on a revival.
Currently, spinning mills in Gujarat are running at about 80 per cent capacity and anticipate demand to remain steady in the next few months as well. The state has 125-odd spinning mills and with installed capacity of more than 45 lakh spindles.
Jayesh Patel, Senior Vice President, Spinners’ Association Gujarat (SAG), says, Demand in the cotton market in the state has revives as prices have stabilized at Rs 55,000-55,500 a candy. Yarn prices have also stabilised at Rs 235-237 per kg.
Bharat Chhajer, Former Chairman, PDEXCIL, adds, the improved demand scenario has boosted the purchasing capacity of traders in Ahmedabad. Cotton demand in the state improved as prices gained stability.
