Unprecedented hike in the yarn price has forced garment industry to stop/slow procurement and increase the garment price.
It’s shocking for the industry as never before has there been an increase of Rs. 50 per kg in history. Garment manufacturers are of the opinion that mill owners are not thinking about the long-term relationship.
Dr. A Sakthivel, Chairman, Apparel Export Promotion Council (AEPC) had discussion in this regard with Textile secretary, UP Singh and has urged for virtual meeting with leading trade bodies representing textile segment of the industry.
Apparel manufacturers are of the view that mills are making huge profit and the only way to stop this is by banning yarn export.
Meanwhile, Tirupur Domestic Garments Manufacturers Association has decided to increase the garment price by 25 per cent, which will be effective from 5 November. MKMR Balasubramaniyam, President of the association, said that the association was forced to take this decision as there is increase in all raw material and production cost from 25 per cent to 50 per cent per piece.
Tirupur Exporters’ Association (TEA) had an urgent Executive committee meeting and discussed the steps to be taken to address the increase of cotton yarn prices.
Raja M. Shanmugham, President, TEA, informed “It is suggested to all our members that since Deepavali festival is round the corner, we may slow down our purchases and may avoid any panic buying of yarn for another two weeks since most of the establishments will be closed till that point of time. Also, more arrival of new crop is expected shortly and this too might help to ease the yarn prices in the coming days.”
He added “It’s also advised to the members to establish the cost increase in our raw materials as well as all the processing charges in addition to the increases in the accessories, packaging and forwarding charges and explain this steep hike in very short period to all their buyers asking them for a price increase accordingly since this is a global phenomenon.
Source : https://in.apparelresources.com/