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Strong yarn prices weakens Erode textile industry
27
Jun '08
The cost of cotton garments has increased this year by 15 to 20 percent in Erode textile market, Tamil Nadu. One of the major reasons according to the industry insiders is the hike in cost of yarn. The textile industry of the State has observed a steep rise of 25 to 40 percent in yarn prices within six months.

The other prominent reasons for skyrocketing garment prices includes risen charges of screen printing units along with high labour wages. To make the situation worse, a three year wage pact is expected to be inked in July. This agreement will further raise the cost of production that will automatically increase the cost of finished product.

In order to shed some more light on the sad state of affairs Mr V P Subramaniyan, President, Textile and Garments Exporters Association, Erode, told Fibre2fashion, “The increase of yarn rates is mainly due to unlimited export of raw cotton and hoarding of yarn in the domestic market. Besides this we are suffering due to heavy rise in labour wages and processing charges. There is no control on these essential factors.

“The Finance Minister wants to escape by mentioning the reason of inflation and hike in the oil prices. But we Indian exporters require solid solutions and strong remedial support from our Government.”

Experts have stated that, if the authorities do not take some strict measures now, the textile manufacturers will book losses, forcing them to pull down the shutters.

Fibre2fashion News Desk - India

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