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Garments may become cheaper next season: CMAI
May '13
Garments may become cheaper for the Autumn-Winter season in India, as clothing manufacturers pass on the benefit of the removal of excise duty on branded garments, announced in the Union Budget 2013-14, according to Clothing Manufacturers Association of India (CMAI).
Speaking to fibre2fashion, Mr. Rahul Mehta, president of CMAI, said, “Many of the mid-level clothing brands have already reduced their prices by around five percent. However, the bigger brands should see a reduction in the next season.”
“The reason for this delayed action is because most of the brands plan their production and deliveries very much in advance, and the Spring-Summer garments are distributed by mid-February. Therefore, by the time excise relief was announced, most of the goods had already been paid excise duty,” he informs.
According to him, the reduction on apparels would be implemented in the Autumn-Winter range after the end-of-season-sale in July. “This is of course, in the hope that the cost of raw materials do not go through the roof as it is threatening the clothing manufacturers today,” he mentions.
Over the last two months, yarn prices in Indian market have increased by about 20 percent, significantly affecting the garment manufacturing sector in the country.
“Yarn prices are high because fabric weavers and garment manufacturers are not allowed to import yarn duty-free. If import of yarn is allowed duty-free, prices will automatically come down,” Mr. Mehta opines.
Last month, Textiles Ministry of India urged the domestic cotton yarn producers to maintain the prices of their products at low levels, so as to avert any negative impact on any of the textile industry segments.

Fibre2fashion News Desk - India

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