Enterprises producing export oriented goods are battling with soaring prices of raw materials, as the fourth quarter begins and many firms are facing higher production costs. The industries dealing in garments, seafood and wooden sectors are facing the impact of soaring raw material and input prices.
The enterprises in these sectors are making an effort to surmount the shortage of capital for production and electricity. Cotton prices in the global market have showed 45 percent growth compared to the prices of last year.
Low input supply affects the cost of production in domestic textile and garment sector. This year, just 5 percent of cotton requirement of the domestic textile and garment industry has been fulfilled. The country is likely to trade in 370,000 tons of cotton from foreign countries, by the end of the current year, for textile production. Last year, the country had imported 300,000 tons of cotton.
Moreover, to overcome the shortage of electricity, garment and textile manufacturers are also expected to make investments on electricity generators. In spite of all the challenges, textile and garment sectors are expecting to achieve this year's export target of $10.5 billion.
Fibre2fashion News Desk-India
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