Apparel exporters express concern over hike in cotton, yarn prices
Apparel exporters are reporting significant financial strain due to a 60% surge in cotton and yarn prices over the last six months. Industry leaders are calling for government regulation of yarn exports to maintain competitiveness against international rivals like Bangladesh and Vietnam.
Why it matters
Rising raw material costs threaten the stability of India's textile export sector, which is a major source of employment and foreign exchange.
Increase in cotton and yarn prices in the last six months is impacting the apparel value chain leading to even cancellation of garment export orders, claim apparel exporters.
Chairman of the Apparel Export Promotion Council (AEPC) A. Sakthivel said export of yarn and increase in cotton yarn prices is affecting the competitiveness of the apparel sector and hence, the Union government should regulate yarn exports.
Cotton yarn prices have increased by around 60 % since January. With increase in export of Indian cotton and cotton yarn to apparel-producing countries such as Bangladesh and Vietnam, Indian garment manufacturers are losing their competitiveness, he said.
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