Home / Knowledge / News / Textiles / AEPC seeks Centre's intervention over rising yarn prices
AEPC seeks Centre's intervention over rising yarn prices
03
Sep '12
Dr. A Sakthivel, Chairman Apparel Export Promotion Council (AEPC) while expressing its concern over the volatility in the price of yarn has written to Shri Anand Sharma, the Union Minister for Commerce, Industry & Textiles. In his letter Dr. Sakthivel remarked that, “Unfortunately in the last few months, we have experienced volatility in the price of cotton yarns.

“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:

  • A total production estimate of cotton yarn is 3.5 billion kgs.
  • Exports of cotton yarn are projected at 920 million kgs, but based on current estimates may exceed one billion kgs.
  • Domestic supply last year for cotton yarns was 2.6 billion kgs.  We expect the demand to increase to 3.2 billion kgs 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)

Must ReadView All

Textiles | On 29th Apr 2017

Textile sector may have uniform GST rate: Irani

The textile sector could have a uniform Goods and Services Tax (GST)...

Textiles | On 30th Apr 2017

Government revamping tech mission on cotton

Indian Government is working to revamp the technology mission on...

Apparel/Garments | On 30th Apr 2017

Columbia Sportswear records Q1 net sales of $543.8 mn

Columbia Sportswear Company has announced record net sales of $543.8...

Interviews View All

Awen Delaval
Samatoa

'Natural fibres are appreciated for traditional authenticity'

Jim Desai
Blaiva Fabricaa

Fashion industry likely to remain labour-intensive in coming years

Sanjay Desai & Ashish Mulani
True Colors

Digital textile printing will be the technology of the future

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Igor Chapurin
Chapurin

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

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

news category


Related Categories:
April 2017

April 2017

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

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search



X