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Rising fabric costs threaten apparel sector
18
Dec '09
Price of cotton has flared up recently on news of low output and heavy bookings from international buyers. This led to a subsequent increase in fabric costs, which have gone up by 30-35 percent in the past few months.

Garment exports experienced a decline by 7.32% during the period of April to September in falling from US $5.22 billion in the same period of the previous year to $4.84 billion. Increase in the price of fabric has forced many exporters to opt for a cut in production.

Rising prices of cotton with a consequent increase in the fabric costs is taking a heavy toll on the garment exports and affecting the already wafer thin profit margins.

The export industry which provides job opportunities for 3.5 million workers directly and 3 million people indirectly is currently going through a very rough patch.

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Fibre2fashion News Desk - India


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