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Fabric processors witness renewal in orders
Apr '10
The Ahmedabad Textile Processors Association (ATPA) which was facing a slump in order position just a few months ago is now witnessing a slow but steady growth in demand in new orders. According to an expert, order positions have seen a rise of between 12-15 percent in the last fortnight.

The slowdown in demand was not the only factor, troubling the industry, which also had to face the kind of price fluctuations, never seen before. Abnormal prices swings of between Rs 7-12 per metre were recorded in the dark days of 2009, against normal fluctuations of Rs 1-3 per metre.

To add to their woes, inventories also started piling up, due to which some resorted to a cutback in production, which also lead to laying-off of workers among a few units. But all that is a thing of the past, said, Mr Amarjit Singh, Director of Pee Gee Fabrics Ltd, one of the oldest fabric process house in Ahmedabad.

Speaking exclusively to Fibre2fashion, Mr Amarjit said, “The order position of the fabric processing industry has started improving since last fortnight and we expect it to further improve in the months to come, overall 2010-2011 shall be a good year for the textile industry as the economy is growing at a pace of 8 percent.

“But the biggest worry is the rise of prices of the raw materials, like yarns and chemicals. After good festival sales of Diwali & Christmas, the textile market faced a downfall in production and sales for the past three months as there was no big festivals and marriage season.”

He concluded by saying, “But the demand for value-added goods has picked up and we expect it to further pick up in the coming months. Overall 2010-2011 shall be a good year for the textile industry, provided the monsoon is also good in this year.”

Fibre2fashion News Desk - India

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