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Bolivian textile sector troubled by high costs
07
May '12
The textile industry in the South American country of Bolivia is bogged by down lack of raw materials, a weak textile supply chain, illegal imports of textile and clothing among many other challenges.

In recent times, costs have increased manifold, mainly salaries which makes Bolivian textile products uncompetitive even in local markets, says a top official of a textile association – 'The Textile Conglomerate Boliviano (Cotexbo)'.

“The MSME's in the Bolivian textile sector have been hit the hardest in the last few years, mainly due to rise in wages and raw material prices. They dare not increase final product prices, as they will loose business”, John Pacheco said.

He added, “The government does not provide any incentives to alleviate sufferings of these small textile enterprises, which makes it more difficult for them”.

Speaking about the current status of the textile industry in Bolivia, he informed, “We use obsolete technology compared with our neighbouring countries. We also need to import all the raw materials needed for production”.

“This leads to high costs, due to which, we are not able to compete even in the local markets. This has encouraged illegal imports of textiles and clothing, which eats in to our local market share”, he revealed.

Fibre2fashion News Desk - India

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