If the Government of India fails to take measures to trim down the prices of yarn by reducing exports, the hosiery industry of the country might witness massive job losses, informed producers' lobby.
Secretary of the Federation of Hosiery Manufacturers of India (FOHMA), BD Kothari informed that, prices of cotton yarn have surged in the month of September last year to Rs 190 per kg from Rs 135 per kg, in the local market resulting in buyers' resistance and drop in manufacturing.
Moreover, the cotton yarn supply in the local market has also become irregular, reducing the profit margins of hosiery producers by 10 percent. In West Bengal, manufacturing has plummeted by 10 to 15 percent, added Kothari.
He further said that, huge rise in yarn exports has led to amplification of its prices. Currently, around 17 percent of the total yarn production in the country is shipped. Therefore, the government should take urgent steps to shrink these exports, he said.
He demanded the government to impose export duty on yarn exports and make local supplies regular, as well as to frame a mechanism to control the anomalous rise in yarn prices.
Kothari said that, FOHMA has already discussed this matter with the ministry of textiles, which has assured the federation to take action pertaining to this.
However, if there is no action taken soon enough, the current situation will continue for months forcing the industry to witness large scale lay-offs, he added. A million people receive livelihood from the hosiery industry of the country.
Fibre2Fashion News Desk - India
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