Apparel exporters urge government to intervene immediately amid high cotton yarn prices
The Apparel Export Promotion Council (AEPC) on Wednesday urged the government to take immediate action amid soaring commodity prices to safeguard the competitiveness of India’s garment exports in the global market.
The price of cotton yarn has increased by 10% over the past two months. The price rose from Rs376/kg in March to Rs406/kg in April and then to Rs446/kg in May. Over the past 18 months, this rise in yarn prices has been around 100%, rising from Rs200/kg to Rs446/kg.
Maintaining the competitiveness of Indian exports was relevant to ensure the achievement of the $20 billion ready-to-wear apparel export target for the year 2022-23.
AEPC President Narendra Goenka said that while the industry has been striving to increase its production capacity, the continuous increase in the cost of raw materials has had an impact on the entire supply chain. value of the clothing, leading to an increase in the price of the garment.
“Garment exporters have faced a lot of resistance from buyers to place new orders due to this continued increase,” Goenka said.
He added that while India was already losing out to its competitors in Bangladesh, due to their free trade agreements in markets like the EU, the prevailing high prices will only increase the competitiveness gap. of India compared to its competitor countries. “This will divert global orders to our competitor countries, along with associated jobs and domestic value-added potential,” Goenka said.
Last month, the government removed tariffs on cotton imports from April to September this year to cool prices. “While this reduction in import duties was expected to benefit the textile industry and keep the prices of cotton and subsequently cotton yarn for the garment industry low, it does not however, has not helped to cool prices,” Goenka said.
“With your timely and stern intervention to control the ever-rising yarn price, it will help us achieve the export target of nearly $20 billion and double exports by 2027,” he said. he adds.