Indian apparel exporters have welcomed the Textile Ministry’s intent to find evidence of cartelisation, which is resulting in sudden spike in cotton yarn prices. This decision is important to prevent supply chain imbalances and will protect lakhs of livelihoods.
Apparel manufacturers believe that this investigation will help in curbing the steep increase and unpredictability in availability of cotton and yarn, which is hampering the apparel industry’s order book planning and overall competitiveness of the entire value chain.
Apparel Resources had reported about this investigation of Ministry of Textiles (MoT) yesterday (23 June).
Also Read: Ministry of Textiles is investigating cartelisation behind hike in yarn prices
Dr. A. Sakthivel, Chairman, Apparel Export Promotion Council (AEPC) wrote a letter to Textile Ministry and assured that AEPC will fully cooperate for a third party study with regard to the spike in cotton yarn prices.
He said, “We are happy to note that the Textile Commissioner’s office has been advised to find evidence of cartelisation, which is resulting in these spikes and hurting the overall interest of the industry. With Ministry’s support, such a study can set precedents for a data-driven management of the supply chain imbalances.”
It is pertinent to mention here that due to the price hike in yarns, lot of powerloom units have closed and MSMEs have been badly impacted. MoT’s investigation will help in saving the livelihood of a lot of workers in the powerloom sector and apparel industry.