Low demand forces Indian textile mills to take longer festival holiday

In the latter half of the previous month, the All Bhiwandi Weavers Association resolved to shut down power looms for 20 days. Bhiwandi-based (Maharashtra) power looms will remain closed from November 1 to 20, 2023 owing to inadequate orders. A local businessman highlighted that sluggish demand from the garment industry left them with no choice but to suspend operations for the next 20 days. 

Bharat Shah, a power loom owner from Ichalkaranji (Maharashtra), told Fibre2Fashion, "Prominent weaving hubs like Ichalkaranji, Malegaon, Bhiwandi in Maharashtra, and others in neighbouring states are experiencing similar scenarios. Power looms are ceasing operations due to the absence of garment industry demand. Power loom proprietors are struggling financially to sustain production, having already accumulated substantial stocks for potential sales." 

Industry insiders noted that small-scale weaving, primarily power looms, and garment manufacturing units have the flexibility to stop production as they employ piece-meal workers and are not burdened with significant staff salaries and mandatory overhead expenses. The current situation is dire, and small-scale textile factories have no alternative but to halt production. 

Tiruppur and other garment hubs in Tamil Nadu have already reduced their output. Numerous garment units have completely ceased operations due to the lack of export or domestic orders. The Andhra Pradesh Textile Mills Association (APTMA) recently stated that several mills, especially spinners, have either stopped their production or are on the verge of shutting down. Larger spinning mills, despite substantial salary and overhead burdens, have also had to reduce production due to poor demand. 

Delhi NCR in north India is also grappling with a similar predicament. Garment units have either paused their production or have had to slow down their operations. However, large spinning and weaving mills cannot completely halt production due to substantial investments and operational commitments, but they have reduced their yarn and fabric output. 

An industry source in Ludhiana mentioned that not only weaving and spinning units but also a considerable number of garment units must maintain production, albeit at a lower capacity, to retain their workforce. Most textile factories, particularly those in the weaving and garment sectors, are contending with subdued global demand. 

The global recession has also led to increased imports of garments and fabric in the country as neighbouring countries like Bangladesh and China are offloading their products at significantly lower prices. Industry sources stated that not only global brands but also numerous domestic retailers are sourcing from these neighbouring countries, further diminishing the local demand for garments and fabric. 

ALCHEMPro News Desk (KUL)