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Garment producers perturbed over raw material price hike
May '11
The initial three months of current year saw Cambodia's garment raw material imports rising by 49.83 percent to US $539, over corresponding period last year. Meanwhile, volume-wise it dropped by 24 percent from 129,862 tons to 98,888 tons.

Cotton and fabric prices have almost doubled in the international market, which has led to the increase in value despite fall in volumes. Thus, in order to sustain growth, experts have advised apparel producers to hike prices.

Industry experts also believe that, soaring raw material prices, may it be due to globally rising prices of raw inputs or crude oil, would badly hit production.

However, they are saving hope on the fact that, as the Kingdom has been able to recover from the effects of global economic slump, the industry would keep growing.

Japan, China, South Korea and Taiwan are the key import sources for Cambodian garment industry.

Industry sources say that, though the demand is flowing in steadily, the buyers also need to consider paying appropriate prices; otherwise, producers would miss out on profits.

Besides, there has also been a vertical rise in garment export to the EU markets pursuant to its relaxing its rules of origin in respect of preferential tariffs on imports from Least Developed Countries (LDCs). This is expected to contribute to the industry's continuous growth.

Cambodia in all houses 273 garment factories, which includes 11 new units established after December 2010, while its overall garment and textile exports jumped 45.58 percent during the review period.

Fibre2fashion News Desk - India

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