As demand is down in the international market for textile and clothing products, textile mills in Tamil Nadu are expected to go slow in cotton purchase and consumption till the end of the current quarter (October – December).
Indian Texpreneurs Federation (ITF), a trade body of the state, had recently conducted a survey among 132 textile mills of the state which have a total of 61 lakh spindles.
According to the survey, 74 percent of the mills had reduced capacity utilisation voluntarily due to low demand. Almost 6 percent had shifted fully to man-made fibre and 11 percent had increased use of man-made fibre (MMF) with cotton.
This set of mills consumed 15.38 Lakh Cotton Bales during October, November and December months of last year (2021) and now, the same mills are expecting consumption of 10.56 lakh Cotton Bales in October, November and December month period of the current year. This 31 percent reduction has resulted in a possible drop of 4.81 lakh bales of Cotton consumption amongst the 61 lakh spindles.
“ITF estimates a similar drop on the side of the remaining mills also in Tamil Nadu. As a whole, we can expect a minimum 10 to 12 lakh bale reduction in consumption of cotton in this 3-months period of 2022-23 cotton year in Tamil Nadu alone,” said Prabhu Dhamodharan, Convenor, ITF.