Rising yarn & fabric prices hit garment exports - GEA

22 Mar '10

1 min read

Mr. Rakesh Vaid, President, Garments Exporters Association has expressed serious concern over the steep hike in prices of cotton yarn and fabric, adversely affecting the competitive strength and performance of Indian Apparel Industry. Besides price fluctuation, fabric availability has become a serious issue as weaving units are not making any delivery commitments.

Demanding some sort of control on the export of cotton and yarn, he also stressed the need to focus more on value added exports of garments rather than raw cotton or fabric as the value addition is over six times if the same amount of cotton yarn that is being exported is used by Garments exporting units for their export products.

Mr. Vaid pointed out that garment exporters are still facing financial difficulties because of worst ever worldwide recession and low unit value realization from the overseas market and it would take some more time for the world economy and the apparel trade to revive. He further pointed out that the labour-intensive garment export sector requires special consideration as it adds maximum value to the exported products using over 95 per cent indigenous materials.

Garments Exporters Association

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