Confederation of Indian Textile Industry (CITI) and spinning associations have submitted incorrect and skewed data to Minister of Textiles Piyush Goyal in a recent meeting.
Claiming so, textile industry veteran and Founder of TT Limited, Dr. Rikhab C. Jain, who is also associated with various organisations, wrote a letter to trade bodies like Apparel Export Promotion Council, Clothing Manufacturers Associations of India, All Garment Associations & Hosiery Associations, Prominent Garment Manufacturers and Hosiery & Powerloom Manufacturers in this regard.
“There are conflicting interests within the textile industry. No doubt, but none of the stakeholders should give any wrong information, incorrect data, skewed and twisted data about the impact of space rocketing cotton prices, 70 per cent plus rise within last few weeks,” he wrote in his letter.
He further added that according to CITI “Cotton accounts for 55 per cent to 60 per cent of yarn cost and yarn cost accounts for 20 per cent to 25 per cent of the garment and made up cost.” This statement is untrue, wrong and is enough to create an adverse mindset for any decision-maker.
As per Dr. Rikhab C. Jain, yarn cost for garment, made up and hosiery articles will range from 40 per cent to 65 per cent depending upon lower segment, middle segment or higher segment products. Obviously, packing cost and value addition are more in the case of elite products, but even their yarn cost is not less than 40 per cent. In the case of fabric, yarn cost may touch even 80 per cent to 85 per cent. For instance, for white cotton knitted fabric the value addition is just 15 per cent to 20 per cent.
Similarly statement that 20 per cent to 25 per cent is only yarn cost in case of made ups is also absolutely wrong. It would be normally in lines with other fabrics only as made ups have no tailoring cost at all.
“Spinning Mill Associations and CITI have wrongly printed papers to impress that rise in cotton prices and cotton yarn prices have not gone up in tandem. Cotton yarn prices have moved up by 65 per cent plus against cotton price moving up by 80 per cent approximately in the post Covid period. It is very clear that yarn prices have moved up much more than warranted by cotton prices. Even if cotton cost is taken as 60 per cent of yarn cost, yarn prices should not have increased by more than 50 per cent to 55 per cent (assuming 10 per cent inflation in other costs).
“Let fresh representation be made to Government of India and Spinners Associations. CITI, in fact, is not an apex textile body but only a new version of Indian Cotton Mills Federation (ICMF),” the letter reads.
Source : https://in.apparelresources.com/