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Dearth in raw materials affects textile production
26
Apr '10
Shortage in raw materials has been creating difficulties in production for both rubber and textile industries. More so, as the prices of raw materials are increasing, manufacturers dread to increase, sale prices of goods as they fear losing out on customers.

However, according to an industry expert, every month, since the onset of 2010, rates of viscose fibre has been steadily increasing by 10 percent, from $2.2 - $2.7 per kilo; whereas rates of cotton fibres has increased from $1.3 - $1.6 per kilo.

For instance, small traders are able to deliver only 50 percent of the demand received from textile workshops in the area and although buyers accept increased prices, the goods supplied are short in number.

Since the export prices are high and local buyers fail to make timely payments, many fibre suppliers refrain from selling fibre to local buyers and prefer exporting it.

Concerns rose in Vietnam, when in mid-April 2010, India banned overseas sales of cotton in order to protect its domestic industries. Vietnam depends heavily on cotton imports from India.

Fibre2Fashion News Desk - India

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