Textiles Min advises cotton yarn producers to reduce prices
The government Tuesday asked cotton yarn producers to keep the prices low so as to ensure that various segments of the textiles industry, mainly the powerloom sector, are not impacted adversely, industry body AEPC said.
New Delhi: The government Tuesday asked cotton yarn producers to keep the prices low so as to ensure that various segments of the textiles industry, mainly the powerloom sector, are not impacted adversely, industry body AEPC said.
Textiles Secretary Zohra Chatterjee on Tuesday held a meeting of stakeholders on the problems being faced by the industry.
She has advised all cotton yarn producers to keep the prices low so that there is no need of intervention by the government, Apparel Export Promotion Council (AEPC) Chairman A Sakthivel said.
As a result of high cotton yarn prices, a lot of powerlooms are also getting affected, leading to job losses, he added.
In the past few weeks, there has been a steep rise of about 20 percent in cotton yarn prices.
"Increase in demand coupled with high cotton yarn prices have not only affected the garment sector, but also other sectors like handloom, powerloom, made-ups for domestic as well as export markets", Sakthivel added.
The AEPC Chairman further said that high cotton yarn prices have adversely impacted the selling prices of cotton fabric in domestic market resulting into inequilibrium in the whole textiles chain.
Garment exporters in the country are taking up export orders four to six months in advance, quoting the prices based on the prevailing cotton yarn prices, he said.
"Now, the sudden hike in yarn prices is affecting the pricing calculation and the margin could not be added as the orders have been taken in tight competition," he added.
In the past few months, the apparel sector has experienced volatility in price of cotton yarn. While cotton prices rose over 5 percent in the last two months, yarn prices have increased about 20 percent in the same period, AEPC said.
Recently, the council has asked the government to restrict cotton yarn exports and allow duty free imports.
Besides APEC, the other participants at Tuesday's meeting included Handicrafts and Handlooms Exports Corporation, Garment Exporters Association, Texprocil and Confederation of Indian Textile Industry.