Apparel industry has sought urgent intervention of Textiles Minister Smriti Irani for imposing quantitative restrictions and export duty on export of cotton yarn from India, specifically on cotton yarn of 26 counts and above.
It is pertinent to mention that stability in cotton price and predictability in availability of cotton, which encouraged Cotton Corporation of India (CCI) to reduce the price of cotton to small mill owners, did not result in reduction of cotton yarn prices.
Apparel Export Promotion Council (AEPC) also wrote a letter to the Minister in this regard.
Dr. A. Sakthivel, Chairman, AEPC said that despite several efforts by the Government to reduce the price of cotton yarn, price has consistently increased in the last four months and has been affecting the entire value chain.
Also Read: Good News! Cotton Corporation of India reduces cotton prices by Rs. 1,500 per candy
“The rate of increase in yarn prices far exceeds that of cotton prices. The steep increase in prices and unpredictability in availability of yarn means that garment exporters cannot honour commitments they made to their customers. This has also affected handloom and powerloom’ weavers badly. Looms have stopped production. Due to this, the domestic industry has also got affected adversely,” he said.
AEPC also suggested that export duty should be levied on exports of cotton yarn. This will result in a sharp decline in domestic yarn prices and an increase in value addition and employment in the country. This will also help in increasing garment exports. And, it will result in only normal profits accruing to yarn spinners, not the super normal profit owing to the profiteering currently happening.
The entire country is the loser if yarn is exported at the cost of domestic and export-oriented manufacturing industry. It is akin to exporting jobs at a time when the entire country is doing its best to get people back to work.
Also Read: Mill owners urged to reduce yarn price by Rs. 20/kg
Source : https://in.apparelresources.com/