Home / Knowledge / News / Textiles / Garment exporters reeling under price pressures, AEPC
Garment exporters reeling under price pressures, AEPC
30
Mar '10
The Apparel Export Promotion Council (AEPC) said that working of Indian businesses has been severely dented by a 40 per cent hike in prices of cotton yarn, tumbling values of dollar and euro against the Indian rupee and a sharp increase in minimum wages for workers in the national capital.

Textile mills have been frequently revising yarn prices upwards in the past four months while citing rise in prices of cotton, power and labour. "But the abnormal increase is without any co-relation to the rise in yarn input costs," said AEPC's chairman Premal Udani.

The planned increases in customs and excise duties on petroleum products will seriously affect the textile and clothing industry as power shortages will further increase production costs, he said.

At the same time, the two major trade-related currencies the dollar and the euro have been on a steady downward spiral in the past three months resulting in poor realisations for Indian exporters.

With the rupee appreciating 4.13 per cent against the dollar and 10.15 per cent against the euro since January 1, the profitability of small and medium-sized export companies who work on seven to eight per cent operating margins has taken a huge hit, said Mr Udani.

"Many exporters are not able to confirm new orders and bookings have come down sharply as retailers in the West who are just emerging out of the worst recession in decades are in no mood to give better rates," said Mr Udani.

On top of it, the Delhi state government has increased minimum wages for workers by 33 to 49 per cent from February 1. “We are still not out of recession. Such unprecedented increase will jeopardise our sustainability. Once we loose our competitiveness to countries like China and Bangladesh, it will not be easy to regain the lost ground."

In the current fiscal year, India exported garments worth 7.92 billion dollars between April and January down 10.16 per cent from 8.81 billion dollars in the same period of previous year.

Apparel Export Promotion Council (AEPC)

Must ReadView All

President Tsai Ing-wen delivering remarks before boarding her plane bound for Central America. Courtesy: Presdient's office

Textiles | On 16th Jan 2017

‘Textiles at centre of Taiwan’s new trade arrangements’

Textiles should be at the heart of Taiwan’s thinking while developing ...

Apparel/Garments | On 16th Jan 2017

Ralph Lauren develops policy on tracking wood based fabrics

In a bid to trace source of wood based fabrics like viscose and rayon ...

Apparel/Garments | On 16th Jan 2017

EC proposes enhanced market access for Sri Lanka

The European Commission (EC) has proposed that a significant part of...

Interviews View All

DK Sharma
Velocity Apparelz

We constantly communicate with employees at all levels

Mandeep Nagi
Shades of India

Women value something that is unique and has a flavour of India

Marazban F Velati
Sutlej Textiles & Industries limited

No training can be effective till the candidate believes in it.

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer Prathyusha Garimella is known for blending...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

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
January 2017

January 2017

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

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search