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High yarn prices impact clothing delivery schedules
Nov '10
Christmas and New Year are just around the corner and going by past experience, this should have been busiest time for all garment exporters from India, as they have to ship the inventories ordered by the retailers, well in time, so that it hits the shelves, before the shopping for the festivities begin.

But according to the exporters, the delivery schedules are getting skewed, due to shortage as well as the ever-soaring prices of cotton yarn in the domestic market and will prove to be difficult to ship orders on time.

Yarn makes up for up to 60 percent of the fabric cost and following the flare-up in raw cotton prices in the last few months, cotton yarn prices too have increased by between 35-40 percent for different varieties of yarn, since the beginning of the year.

According to them, yarn exports have surged by 80 percent year-on-year, in the period January to June 2010, whereas clothing shipments have plunged 11 percent in the same period.

To get to the depth of this peculiar situation, fibre2fashion spoke to Mr S. Sakthivel, Secretary of the Tirupur Exporters' Association, who said, “The impact of soaring cotton yarn prices is affecting badly, as we are not able to get orders, due to the high prices and the mill owners are also hiking the price every week, so we want immediate ban on yarn exports till the time we get stable delivery of yarn”.

When asked how he envisages the business during this festive-quarter, he replied by saying, “We expect that once yarn prices stabilize, we anticipate that there will be a good improvement in volumes of our shipment”.

Fibre2fashion News Desk - India

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