1. India’s Textile Sector Set for Growth Amid Festive Demand and Global Shifts
India's textile sector is
expected to experience significant growth in the second half of FY25, driven by
several favorable factors. A report by Systematix Institutional Equities
highlights that improved demand momentum, combined with volume growth, is
likely to outpace inventory levels as the year progresses. This growth is
attributed to easing inflation, normalized channel inventory, improved supply
chain dynamics, and anticipated cuts in interest rates. Additionally, the
ongoing crisis in Bangladesh and the global shift towards the China+1 strategy
are expected to further boost India's textile sector, particularly as demand
increases during the festive season.
2. Indian Textile Industry
Pushes for Extension of Minimum Import Price on Knitted Fabrics
India’s textile industry is
calling for the extension of the Minimum Import Price (MIP) on all types of knitted
and crocheted fabrics under Chapter 60. Industry stakeholders have expressed
concern that the existing MIP, which covers five HS lines and is set to expire
on September 15, 2024, has not sufficiently curbed the influx of imported
knitted fabrics. Industry organizations have petitioned the Ministry of
Textiles to extend the MIP to all relevant HS lines, arguing that continued
imports pose a threat to domestic manufacturers. The Ministry is expected to
make a decision soon, following consultations with industry representatives.
3. Heavy Rains and Cyclone
Threaten Gujarat's Cotton and Peanut Harvest
Gujarat's cotton and peanut
crops, which are just weeks away from harvest, are under threat from heavy
rains and a potential cyclone. The India Meteorological Department has
forecasted heavy precipitation and strong winds in the Saurashtra and Kachchh
regions over the next three days. A deep depression in the coastal areas may
intensify into a cyclone, with wind speeds expected to reach up to 85
kilometers per hour. The adverse weather conditions raise the risk of floods,
potentially causing significant damage to the crops. Farmers and industry
stakeholders are closely monitoring the situation, as the outcome could impact
both local and national agricultural outputs.
4. ICE Cotton Prices Decline
Amid Stronger Dollar and Improved US Crop Conditions
ICE cotton prices have been
on a downward trend for the third consecutive day, driven by a stronger dollar
and improved weather conditions in US cotton-growing regions. The December
contract for ICE cotton fell to 68.55 cents per pound, marking a decline of
over two percent. The dollar index's 0.5 percent gain, coupled with favorable
weather and weaker crude oil prices, has contributed to the dip in cotton
prices. Market sentiment has also been affected by concerns over slow demand
and ongoing trade tensions between the US and China. Traders are awaiting the
US cotton export sales report, which is expected to provide further insights
into market trends.
Note:
Textile Sphere complies and
shares news from various reliable sources to keep you informed about the latest
developments in the textile industry.
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