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Textile experts deride once-a-month pricing policy
18 Feb '11
2 min read
Textile experts have not taken kindly to the policy being formulated by the Taiwanese Ministry of Economic Affairs (MEA) requiring producers across the textile value-chain to change prices of their products to just once-in-a-month.
The MEA according to reports emanating from Taiwan has suggested the once-in-a-month pricing policy to safeguard the interests of the downstream producers like fabric manufacturers to protect them from the volatility of raw material prices as well as ensure adequate supplies.
Global cotton prices have shot through the roof in recent months, amid a skewed global supply-demand gap of the commodity. Along the way, producers of man-made fibres too picked up the cue and prices of PSF alone have increased by 19 percent in 2011.
However, experts opine that market prices in the long run are driven by the factor of supply-demand and it would be erroneous on the part of the government to artificially regulate prices of textile raw materials.
They add by saying that at a time when global prices of cotton are is under going high volatility, it would become impossible or even suicidal for anyone in the textile value-chain to stick to a single price for the course of a whole month.
The MEA according to reports emanating from Taiwan has suggested the once-in-a-month pricing policy to safeguard the interests of the downstream producers like fabric manufacturers to protect them from the volatility of raw material prices as well as ensure adequate supplies.
Global cotton prices have shot through the roof in recent months, amid a skewed global supply-demand gap of the commodity. Along the way, producers of man-made fibres too picked up the cue and prices of PSF alone have increased by 19 percent in 2011.
However, experts opine that market prices in the long run are driven by the factor of supply-demand and it would be erroneous on the part of the government to artificially regulate prices of textile raw materials.
They add by saying that at a time when global prices of cotton are is under going high volatility, it would become impossible or even suicidal for anyone in the textile value-chain to stick to a single price for the course of a whole month.
Fibre2fashion News Desk - India
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