The decline in cotton’s share in global fibre consumption is catching up in India, too, with the production and consumption of synthetic and cellulosic fibres increasing, traders and industry experts have said.
“The Indian fashion industry has also started adopting the global trend of using multi-fibres in a majority of textile products. Blends, particularly Tri-Blends, are making inroads in the fashion space at high end as well as value retail due to better functional aspects,” said Prabhu Dhamodharan, Convenor, Indian Texpreneurs Federation (ITF).
“No doubt, global consumption of manmade fibres has gone up. However, imports of manmade fibres have been curtailed due to the quality control order (QCO). As a result, imports of fibres have been curtailed,” said K Selvaraju, Secretary-General, The Southern India Mills Association (SIMA).
Recycled yarn use
“Consumption of cotton has already been impacted by manmade fibres. Now, the use of recycled yarn is improving. It is also eating into cotton consumption,” said Raichur-based Ramanuj Das Boob of All India Cotton Brokers Association and a sourcing agent for multinationals and domestic textile companies.
“This has been taking place from around Covid time,” said Rajkot-based Anand Popat, a cotton, yarn and cotton waste trade.
The USDA said in its “Cotton: World Market and Trade” report that 2024-25 global cotton consumption is forecast at 115.2 million bales (226.8 kg each), near the 10-year average. It is over 9 million bales below the record level witnessed 4 years ago.
“This is despite record global fibre consumption in the calendar year 2023 as synthetic fibres are meeting the world’s growing demand,” it said.
Behind the motivation to shift
ITF’s Dhamodharan said cellulosic and polyester fibre usage is going up in the basic products which are used by the mass population due to cost dynamics. “Inflation and pricing challenges motivate the textile eco-system to explore these alternatives,” he said.
“The usage of manmade fibres has increased over the past three years, while that of cotton has dropped in comparison in the overall fibre consumption. I would say the usage of cotton has not dropped but it has not witnessed growth like manmade fibres. That’s why its share in the overall fibre consumption is dropping,” said Popat.
“Yarn and fabric manufacturers have started adopting to use of cotton and cellulosic blends as a combination to improve operational efficiency and better finish,” said the ITF convenor. These changes on the ground are keeping a check on consumption and prices of cotton In India, he said.
“Recycled yarn and cloth movement are moving fast as they are competitively priced. However, it seems to affect the quality of yarn and cloth,” said Das Boob.
Stagnant cotton growth
“Cotton consumption continues to hover around 150 million bales, give or take 25-50 lakh bales. It has remained so over the past few years, while synthetics usage has increased,” said Popat.
The USDA said China has been the main supplier of synthetic fibres due to unprecedented capacity and competitive prices. “Lastly, stagnant growth in cotton production has also pressured cotton consumption,” it said.
According to a report published by Textile Exchange, polyester has been the primary driver behind the growth in global synthetic fibre production. Production increased by 8 million tonnes year-on-year (equivalent to nearly 37 million bales) to 71 million tonnes in 2023. The annual production growth was roughly one-third of the world’s annual cotton consumption.
Total synthetic fibre production was approximately 84 million tonnes (other fibres include nylon, polypropylene, acrylics, and elastane), showing that polyester makes up roughly 85 per cent of synthetic fibres. The global production of cellulosic fibres grew 500,000 tonnes (equivalent to 2.3 million bales) to 7.9 million tonnes, with rayon (also referred to as viscose) accounting for the majority at 6.3 million tonnes in 2023, it said.
Prices ruling stable
A report by the International Cotton Advisory Committee (ICAC), in its annual World Textile Demand, said 2023 production of cellulosic fibres was over 15 per cent higher compared with 5 years ago.
“Efforts are now on to promote recycled yarn in a big way by branding it. They are also looking at certification,” said Das Boob.
All these have resulted in cotton prices dropping and ruling stable at levels of ₹53,000-54,500 per candy (356 kg) despite the crop being pegged lower at 299.26 lakh bales (325.22 lakh bales).
“Prices are moving up and down by ₹1,000/candy now and then. Old cotton stocks are being sold around ₹53,000 and many spinning mills have stocked them,” said the Raichur-based sourcing agent.
Traders say this is best time to procure cotton as the quality is good. After January, the quality may be affected. Daily arrivals around around 2 lakh bales and the Cotton Corporation of India is buying at least 50 per cent of it under the price support scheme. Spinning mills are buying the rest.
“CCI is reported to have bought at least 20 lakh bales till now. Its cost will be around ₹60,000,” said Das Boob.
