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Clothing exports will pick pace March onwards – Exporter
16
Sep '09
If apparel manufacturers are to be believed, exports from the sector are set to witness normalcy, as they mention that, orders have started trickling in at a faster pace than in the earlier months.

But the only stumbling block in taking those orders and executing them is that, costs of production have risen dramatically in the last few months and at the same time, per unit prices have taken a dive.

Speaking exclusively to Fibre2fashion, Mr V Mohanraj (V.P), Textiles and Garment Exporters Association, Erode, said, “Yes, now enquiries are back to normal and exporters have started receiving orders from US and European markets, but have to cut back on profit margins”.

He said, “Currently exporters are facing problem as price of raw materials like yarn, fabric are more in India, when compared to Chinese market. Also processing charges are more here, so over all cost goes higher in manufacturing garments in India”.

He added by saying, “We have asked Government to give us some benefits such as, more duty draw backs, reducing income tax and reducing duty on yarn and due to low prices quoted by buyers, some of the exporters may loose out on export orders, while others may work on low profit margins, but by March or April 2010, markets will perk up”.

When asked to comment on challenges posed from Chinese suppliers, he replied by saying, “It is mainly price factor, since a few items are cheaper in China, but at the same time India also has an upper hand in some things such as embroidery, ladies add-on, etc, and our pricing in these is easily comparable to other markets”.

Fibre2fashion News Desk - India


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