India: Textile production and exports declined in June due to weak demand
"Textile exports decline in June, mills halt due to weak demand"
The textile and apparel exports experienced an 11.3 per cent contraction in June compared to the same period last year, while several textile mills in the South halted production due to weak demand.
According to data provided by the Confederation of Indian Textile Industry, the export of cotton yarn, fabrics, made-ups, and handloom products declined by 1.21 per cent year-on-year. Additionally, manmade products saw a 17.22 per cent decrease, while jute products and carpets suffered declines of 26.72 per cent and 15.43 per cent respectively.
The value of textile exports in June was $ 1,624 million, down from $ 1,736 million in June 2022. Similarly, apparel exports amounted to $ 1,248 million, compared to $ 1,501 million previously.
Smaller textile mills in Tamil Nadu suspended production due to a lack of orders. The smaller companies in the Tiruppur cluster were particularly impacted.
Factors such as the slowdown in the US and EU markets, as well as a lack of cost competitiveness, were affecting the textile and clothing exports. The domestic market was receiving yarn that should be exported, exacerbating the existing excess capacity in the country.