Home textile exporters not impacted by yarn price-hike

28 Nov '09

2 min read

Since the last few days, value-added exporters from the textile sector, mainly apparel manufacturing units have been protesting to control unregulated exports of cotton yarn which has led to prices flaring up by 25-30 percent and also has created a shortage.

But the moot point experts from the textile sector would like to point out is that, it is mainly the apparel manufacturing sector, which is protesting, while the home textiles industry has not been so vehement in their opposition to unregulated exports.

According to experts, the main reason could be that, while the clothing exporters passed on the benefits of low cost yarn to their buyers in the last three years, the home-textile industry chose to keep their selling prices high and in the process reaped huge profits.

The low rates quoted by the apparel exporters helped Pakistan to become one of the cheapest exporters' of knitwear and readymade garments in the world.

Now, when the prices of cotton yarn are shooting up, it is the garment sector which is filling the pinch, since they had quoted very low rates to their buyers when accepting these orders, and now when prices are shooting up it is becoming difficult for them to process these orders.

While on the other hand, home textile exporters were already operating on fat margins, so a rise in cotton yarn prices has not affected them to the extent that it has impacted the clothing manufacturing industry.

Fibre2fashion News Desk - India

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