Yarn prices leave exporters in state of dismay

07 Feb '08

3 min read

“Further, it is impossible to execute the existing orders in increased yarn price (or) to approach the customer to raise the product rates, as prices are already negotiated quite badly due to 15 percent appreciation of Rupee.”

Mr Gopalakrishnan said they are chalking out a plan before meeting with the Union Ministry. “We intend approach the Government to over come these issues by preparing a policy exclusively for Textile Sector.

“Government must make sure the adequate availability of cotton for domestic markets. It should exercise control over the cotton exports and its pricing policy. It would be preferable if the exports are restricted to certain percent of each cotton exporting company's turnover. So that all cotton mills will be in a situation to sell some percent of cotton in domestic market, which will be very helpful to reduce the demand and to keep the cotton price stable.

“a methodology need to be introduced to restrict the yarn prices at the traders level. We feel that Government should fix and control the yarn prices as like few of the agricultural products.

In addition to this, Duty Draw back should be increased to recover the loss faced due to Dollar devaluation and yarn price increase. The relief packages announced by the Ministry should be released immediately to the exporters. Dual Exchange Rate should be introduced immediately, one is for exporters and importers and the other one is for general category. All service taxes should be removed for Textile Exporters including FBT.”

He concluded the conversation by saying that, textile industry should be considered as a separate trade, and the policy should be not be derived along with other Industries, which are exporting services like Software.

Fibre2fashion News Desk - India

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