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Published
Nov 22, 2022
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Cotton prices and waning exports put pressure on denim hub Ahmedabad

Published
Nov 22, 2022

Denim manufacturers in Ahmedabad, a hub for the industry, have seen their export orders dwindle in the second half of the 2023 financial year. Global disruption and rising costs has put pressure on the area’s denim businesses. 

Denim exporters in Ahmedabad are seeing orders drop - International Convention City Basundhara- Facebook


Export orders for denim clothing and textiles had experienced a boost in the wake of the Covid-19 pandemic in the 2022 financial year but continued global strain is taking a toll on Ahmedabad’s industry, ET Bureau reported. Factors including the Russia-Ukraine war, depreciating currencies, and rising energy costs among other expenses have caused demand from markets such as the US, Europe, and the Middle East to drop which has dented the pockets of Ahmedabad’s denim businesses.  
 
“Production in the European Union reduced dramatically due to the high energy costs,” said an anonymous denim manufacturer based in Ahmedabad,” TNN reported. “Moreover, wage inflation in the west is also very high in addition to higher fuel costs. As a consequence, industrial capacities are grossly underutilised. This impacted procurement of denim from Gujarat… The second quarter is typically a dry season when the demand as such drops. Geopolitical factors, coupled with a lean season amplified the adverse effect on orders.” 

The premium segment of the market is faring better in the export market due to the fact that spending in the premium segment has not gone down, ET Bureau reported. The duration of the predicted recession in numerous countries will determine whether or not this trend continues. 

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