Home / Knowledge / News / Textiles / Govt to focus on textile raw input costs to check inflation
Govt to focus on textile raw input costs to check inflation
Feb '11
A sharp rise has been witnessed in the bulk commodity prices on the global markets, since last eight months. Some of the people are holding factors like speculation ignited by the excess liquidity across the globe to be responsible for such abrupt rise in the prices of commodities ranging right from the sugar to wheat and corn to cotton.

However, even other factors like the climatic adversities in different parts of the world joined by heavy demand on the back of global economic revival, too, have played a part in instigating such abrupt rise in the prices of the commodities.

Sharp rise in the prices of cotton and synthetic fibres have even led to rise in the prices of ready-to-wear women's garments in the domestic Taiwanese markets. A rise of around five to eight percent has been registered in the retail prices of domestically produced apparels, while the prices of imported apparels have gone up by almost 12 percent on an average. Similarly, the cotton prices, too, have soared by 170 percent over the last seven months to touch a record high.

Further, in a bid to sustain market stability, the Ministry of Economic Affairs (MOEA), has been continuously holding meetings at an interval of every two weeks to review the prices of key day-to-day necessities in the local market, since last one year.

The Ministry, on February 15 for the first time ever has extended its review list to include key industrial materials.

Considering the recent dramatic variations in the cotton prices in the global market, the Ministry has resolved to restrict the textile material suppliers to one price adjustment per month.

Further, the Ministry of Economic Affairs even called upon 17 executives from the lower, middle and upper stream textile firms for a discussion session to formulate the strategies to tackle the soaring prices of the raw materials.

After the meeting, the Ministry stated that, the soaring cotton prices have set off the prices of domestically manufactured cotton yarns and man-made fibres.

Also that, no upstream manufacturer has yet been seen to have exceptionally hiked its yarn and fibre prices, but many of the downstream firms are facing difficulties in tackling the increasing raw material prices, since the last quarter of 2010, the Ministry said. However, it said that it will coordinate with the upstream textile manufacturers so as to guarantee adequate supply of raw materials to their buyers.

Further, the Ministry even proposes to bar the raw material suppliers from increasing the prices of their raw materials more than once a month. Also, if required it would on a case-by-case basis permit imports of textile raw materials from China, or may even temporarily ban exports of textile materials as per the currently prevailing Trade Act.

Presently, Taiwan still continues to import duties of four to seven percent on different textile items and the MOEA is likely to recommend the Ministry of Finance to reduce these import duties. Garment manufacturers are, however, of the opinion that price adjustments are essential to compensate for the hike in raw material costs as well as workers' wages.

Fibre2fashion News Desk - India

Must ReadView All

Textiles | On 30th May 2017

CAI estimates 2016-17 cotton crop at 340.5 lakh bales

Cotton Association of India (CAI) has retained its earlier estimate...

Courtesy: World Bank/Claude Renault

Textiles | On 30th May 2017

India’s economic fundamentals remain strong: World Bank

India remains the fastest growing economy in the world – economic...

Courtesy: Dollar Industries

Apparel/Garments | On 30th May 2017

Dollar Industries registers Rs 906 cr turnover in FY17

Hosiery major Dollar Industries Limited registered a turnover of Rs...

Interviews View All

Rahuul Jashnani

‘Online economy has changed the whole dynamics of buying habits.’

Cyril Pereira
Reed Exhibitions India, organiser of Asian Machine Tool Exhibition 2016

'Major problem in the textile machinery manufacturing industry is the lack ...

Yashiki Gumber
Sahiba Fabrics

Fabric does not restrict us from fashion trends

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Kerem Durdag
Biovation II LLC

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

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Robert Brunner

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Sonam & Paras Modi

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


news category

Related Categories:
May 2017

May 2017

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


Browse Our Archives


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search