“While cotton has gone up by about 3% to 5% in the last 2 months, yarn prices have increased to 15%+ in the same period of time. As a matter of fact, Indian cotton yarn prices are higher than the price from other countries such as Pakistan, CIS countries, etc.”
Dr. Sakthivel in his letter shared the facts which depicted the clear picture. He stated that, at the recently concluded Cotton Yarn Advisory Board meet on 23rd August, 2012 a rather grim scenario has emerged as under:
- For the export target of 18 billion dollar fixed by the Ministry for apparel industry will require 400 additional million kgs of cotton yarn. The domestic industry is also growing very well and their additional requirement of cotton yarn is estimated at roughly 500 million kgs. Therefore, the total additional requirement would be 900 billion kgs.
- Assuming even a 60% up take of the total requirement, we would still require additional 550 / 600 million kgs of yarn.
- Under the current circumstances, this quantity may not be available from the domestic sources.
Suggesting solutions in his letter Chairman AEPC further stated that, “There are only 2 ways to ensure that the value add segment is not starved of raw material at reasonable price; cap on exports of cotton yarn or free imports of cotton yarn.
“At this stage we are not advocating any cap on exports, but at the same time, we request that the custom duty of 10% on cotton yarn be completely removed and yarn imports are made duty free and drawback may be allowed on export of garments manufactured from such imported cotton yarn.”
The above suggestion is based on similar dispensation for import of raw cotton by the spinners. We are more than prepared to pay the CVD, so that there is no loss of revenue to the Government, he added.
Dr. Sakthivel requested the Textiles Minister for an early action because garment industry is fast approaching peak season. Chairman AEPC also request that the cotton yarn price be carefully monitored as small manufactures and handloom weavers are considerably impacted with the steep price increases.
Chairman AEPC thanked Textiles Minister for the continued support to the garment industry and assured to meet the target of 18 bn US $ set by the Ministry.
Apparel Export Promotion Council (AEPC)
Textiles | On 22nd Jun 2017
Zund Systemtechnik AG, Switzerland’s textile machinery firm that...
Textiles | On 22nd Jun 2017
Hpfabrics, manufacturer of raw fabrics, is opening a new production...
Apparel/Garments | On 22nd Jun 2017
Napapijri has introduced the new Superlight Parka, a new lightweight...
'In export markets, the trend in terms of embroidery, is towards matte...
Bolger & O'Hearn
‘The Indian market is interesting and rather persistent in seeking new...
ITME is an occasion not only to receive new leads but also to work on...
Technical Absorbents Ltd
Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...
The Indian market has huge potential in technical textiles, and by far,...
Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...
Yash P. Kotak
Bombay Hemp Company
One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...
Aditi Somani specialises in luxury fusion wear with international cuts and ...
Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...