Textile Market News

The Ministry of Textiles is expected to receive a 15 per cent increase in budget allocation for FY26, reaching Rs 5,080 crore. This includes a 33 per cent rise in funds for the Production Linked Incentive (PLI) scheme for textiles. In FY25, the ministry's allocation was Rs 4,417.03 crore. The PLI scheme, aimed at boosting domestic production of man-made fibre (MMF) apparel, technical textiles, and MMF fabrics, will see an increase in funding from Rs 45 crore to Rs 60 crore in FY26.

India's yarn market is facing a mix of challenges and opportunities as the strengthening US dollar and seasonal demand shape market trends. The rising dollar has increased the cost of imported viscose yarn, crucial for the textile industry. This has created supply chain pressures and forced manufacturers to adjust prices, particularly in hubs like Surat and Mumbai.

Panipat, famously known as the ‘Textile City,’ is witnessing renewed optimism among its exporters as Heimtextil-2025, the world’s largest textile fair, held in Frankfurt, Germany, garners robust international buyer interest. The city’s textile industry, which boasts an annual turnover of Rs 45,000 crore and exports worth Rs 15,000 crore, is renowned for its handloom products, blankets, bed sheets, and floor coverings. These goods are in demand across Europe, the USA, Japan, and Australia.

Since mid-December, polyester filament yarn (PFY) sales have improved, with inventory dropping to its lowest in 2024. This was driven by better downstream business activity and record-low PFY prices, prompting bulk purchases. Consequently, prices have rebounded by 500–600 yuan/mt, restoring profitability for conventional products like POY150D/48F to 200–300 yuan/mt.

The merger of the Pakistan Central Cotton Committee (PCCC) with the Pakistan Agricultural Research Council (PARC) to create a dedicated Cotton Wing marks a major shift in Pakistan's cotton research and development. The initiative aims to centralize research efforts, improve coordination, and optimize resources for the cotton sector’s growth. The Cotton Wing will focus on enhancing cotton production, quality, and disease resistance, addressing challenges like low yields and poor fiber quality. It will also target pest control, climate change impacts, and modernizing cotton farming techniques.

US cotton exports for the 2024/25 season are projected at 11.3 million bales, a decline of over 400,000 bales from the previous year, marking the lowest level in nine years. While domestic cotton supplies are higher, the drop in exports is driven by competitive pricing from Brazil and a significant decrease in demand from China.