Home / Knowledge / News / Apparel/Garments / Apparel exporters in flux over yarn rate volatilities
Apparel exporters in flux over yarn rate volatilities
17
May '11
Fluctuating fabric and yarn prices have put the value added textile sector industrialists in a tight spot over the rate that they should quote for export agreements.

There are different perceptions regarding future cotton and yarn prices, which have left the industrialists bewildered, whether the commodity rates would rise, remain steady or fall.

Presently, the domestic yarn rates are based on cotton rate of Rs. 7,000 per maund or $1.20 per pound, while the cotton rates currently prevail at $1.40 per pound. Meanwhile, the international cotton rates are expected to retain the same levels, next year too.

The value added industry has thus been advised to confirm any orders for forthcoming season in consideration of the expected future cotton rates, rather than current domestic yarn prices.

Overseas buyers usually pay on basis of prevalent yarn prices, due to which the domestic value added producers suffered greatly during last year, as the yarn prices soared greatly.

These exporters are thus expecting that the economic planners, especially the Trade Development Authority of Pakistan, should at least make a review of the international textile market and present the value added exporters with an idea regarding the probabilities in global yarn prices at least for next six months.

As revealed by garment industry sources, the garment exporters are trying to bag small orders on the basis of current yarn rates, as fluctuations are likely in the yarn rates in near future, and hence the exporters cannot take chances to book big orders for year end at current low yarn rates.

Further, an industry insider stated that, several overseas buyers may enter into an agreement whereby the garment rates would be linked to the rates of yarn in the month preceding the exports. This would be in favour of both the buyers and the exporters. However, it is believed that several small firms would still be compelled to accept orders on basis of prevailing low yarn rates.

Apparel exporters even revealed that, textile exports has turned into a risky business for small scale exporters, as in event of market turning negative, most of the buyers turn away from taking delivery of goods citing one excuse or the other.

Fibre2fashion News Desk - India


Must ReadView All

Indian govt relaxes cabotage rule for cotton transport

Textiles | On 25th May 2018

Indian govt relaxes cabotage rule for cotton transport

The Government of India has relaxed cabotage rules for transportation ...

Courtesy: Teejay Lanka

Textiles | On 25th May 2018

Teejay Lanka doubles production capacity at Indian mill

Teejay Lanka, one of Sri Lanka’s largest textile manufacturers, has...

Courtesy: Messe Frankfurt/Yarn Expo Autumn edition

Textiles | On 25th May 2018

Yarn Expo Autumn 2018 scheduled earlier

Over 500 exhibitors are expected at the Yarn Expo Autumn 2018, being...

Interviews View All

Top executives
Textile & apparel bodies

The mid-term review of FTP is progressive, growth oriented

Angelina Francesca Cheang
MY ANJE

'Consumers in the age-group 21 to 38 are driving the activewear trend'

Luke Otten
Wigwam Mills Inc

Wigwam aims to recycle discarded yarn that doesn’t make it through the...

Akshat Chaudhary

Aizome, Asia's first Fairtrade denim brand, is all set to launch next...

Harmeet Singh

New Delhi-based Jogindra Industries Private Limited provides an assortment ...

Suresh P Bagrecha

Komal Texfab, founded in 1981, is into manufacturing of knitted fabrics,...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

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

Leave your Comments


May 2018

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

news category


Related Categories:

Advanced Search