Home / Knowledge / News / Apparel/Garments / Garment firms upset in spite of rise in orders
Garment firms upset in spite of rise in orders
30
Dec '10
Greater number of orders for garments is flowing in for 2011, as also the prices for the commodity are rising, but still the garment firms are worried.

The garment firms, mainly are apprehensive in accepting the FOB (Freight on Board) contracts due to the concern that, the rise in price of the end products may not be in line with the rise in the price of cotton.

It is believed that, there has been year-on-year rise of almost 10-15 percent in the prices under FOB contracts, whereas prices of those under outsourcing contracts have jumped by around three to four percent. Meanwhile, several firms have booked orders that are sufficient enough to keep them busy till the close of the second quarter of 2011.

The industry's earnings for this year are likely to rise to US$11 billion that is 22 percent higher than the last year's earnings.

Further, as the rise in export prices fails to match the rise in the price of cotton, the garment firms have been advised to cautiously think over the contracts before signing them, so as to shun heavy losses.

Cotton now is being traded at around $3.1-3.4 per kilogram, which is almost double the price at which it was traded in the early part of current year. This rise in the commodity price, to some extent is because, India, the second largest exporter of cotton across the world, restricted its cotton exports to meet its domestic requirements. Besides, as natural calamities badly hit the cotton produce in China, the biggest consumer of cotton throughout the world, it was required to import extra 800,000 tons of cotton to balance the short fall.

Vietnam now produces only five percent of its total requirement and needs to import a larger part of the material from US, Africa and India, to meet the domestic demand. As per the estimations, the country this year would import 370,000 tons of cotton, as against last year's 300,000 tons.

Further, the rise in imports and the speculation in the market are seen to carry forward the rise in the cotton prices in the world markets, to next year too. Moreover, the demand-supply gap too is also expected to keep the commodity price high.

Moreover, as the domestic firms need to rapidly regain the capital for production purposes, they are required to import cotton at least three months before.

Fibre2fashion News Desk - India

Must ReadView All

Courtesy: AWI

Textiles | On 20th Jan 2017

Australian wool EMI at highest ever level in Au$ terms

The Eastern Market Indicator (EMI) managed to forge ahead by a...

Textiles | On 20th Jan 2017

Bangladesh could earn $60 billion in exports by 2021

Bangladesh is expected to earn over $60 billion in exports by the...

Apparel/Garments | On 20th Jan 2017

Fashion etailer Fynd to offer Yepme product offerings

Online fashion retailer Fynd has signed a partnership with Yepme,...

Interviews View All

Rashi Menda
Zapyle

Every fifth sale we make on Zapyle is a repeat purchase

Manfred Mentges
Sedo Treepoint GmbH

We see a higher demand in colour management systems, as customers see big...

Mukesh Agarwal & Rajesh Agarwal
Madhuram Fincap Pvt Ltd

Increasing prices and lack of demand main issues facing industry

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
January 2017

January 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search