Volatile cotton prices, weak domestic demand hurt Gujarat's denim industry

Most MSMEs running at 60 per cent capacity as high input prices have also made exports costlier

Volatile cotton prices and high inflation have forced Gujarat’s denim industry to function at 60 per cent capacity at a time when it was hoping to recoup losses in the upcoming festive season.

Gujarat has around 25 denim manufacturing mills, with a combined installed capacity of over 1 billion metres per annum, forming over 60 per cent of India’s total 1.6 billion metre per annum installed denim capacity.

The impact has been felt the most by micro, small, and medium enterprises (MSMEs), which are staring at low demand in both domestic and export markets.

According to denim makers, the industry