After all the perplexity of soaring yarn prices, and a resulting decline in the apparel exports, Indian apparel exporters are now feeling optimistic. Did the export capping on cotton yarn really help the domestic apparel makers? Whats in store for 2011?


Indian apparel sector was under the pressure of rising prices of cotton yarn for quite some time. During the past three months yarn prices have increased by 40%. This has resulted in an increase in the price apparels which trigged an adverse decline in apparel exports incessantly for the past 7-10 months. After months of ordeal, now apparel manufacturers have a reason to cheer up.


Cotton Yarn prices affect apparel exporters:


EU and US make a major market for India's apparel exports accounting for an 80% share. Soaring prices of cotton yarn have caused a drastic fall in the apparel exports. The hike in garment costs has made the international buyers to seek options in the neighboring countries of Vietnam and Bangladesh, as they proved to be cost effective.