Home-textile exporters from the Southern India of Karur are apprehensive of getting good orders from the Heimtextil Fair in Frankfurt, Germany which is scheduled in the second fortnight of January.
The Karur home-textiles sector has created a favourable impression in international markets and with recovery of global economies in sight; these exporters were looking forward to reaping rich gains at the fair.
But the incessant rise in yarn prices in the recent days is out to spoil the party of these exporters at the fair, as it will be difficult for them to quote competitive prices along with the uncertainty of anticipated increases in the future.
Fibre2fashion has access to the copy of a letter mailed to the Prime Minister, Dr Manmohan Singh, in which the Karur Textile Manufacturer Exporters' Association has sought the intervention of Dr Singh to control the flare up in prices of cotton yarn which have increased by an average of 15-25 percent.
It cites cotton price hike, labour problems & electricity power cuts as the three main reasons for the rise in yarn prices. They attribute the increase in raw cotton prices to the high increase in exports of the white gold beginning from this cotton season, although they admit that there is no significance of the last two reasons with the price hike.
They add by saying that, they are presently not able to service the orders which were received a few months ago, but meant for deliveries in the current days as the order prices were negotiated at prices of yarn prevailing in those days and they never anticipated yarn prices to surge to these levels.
They further add that with the all-important heimtextil fair set to begin from next month, which attracts international buyers and which also has helped them in procuring huge orders in the past; the hike in yarn prices will prove to be a thorn in generating bounty orders in face of competition from other countries like Pakistan.
Fibre2fashion News Desk - India
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