Apparel exporters have again pressed the Ministry of Textiles to intervene in the high pricing of cotton and yarn
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11 January 2022, Mumbai:
The high price of cotton and cotton yarn continues to be a source of worry for apparel exporters. On the 17th and 18th of January, Tirupur's clothing exporters have already indicated that they will go on strike over this problem.
In response, the Apparel Export Promotion Council (AEPC) has sent a letter to the Ministry of Textiles. The council has asked the Ministry to recommend mills that may reduce the price of yarn by Rs. 40 per kilogramme. Cotton candy cost Rs. 67,000 in October 2021, while yarn cost Rs. 331. Cotton prices were raised to Rs. 74,000 in January, an increase of Rs. 7,000, while yarn prices were fixed at Rs. 401. (an increase of Rs.70).
"The growth in pricing is not according to the formula set by the industry," stated A. Sakhtivel, Chairman of AEPC. According to its price-increasing formula, the yarn price would rise between Rs.3.50 to Rs.4 for every Rs. 1,000 increase in the cotton price. However, with a Rs.7,000 increase in the price of cotton, the yarn price has risen to Rs.401... while it should be about Rs.359."
The mills have been increasing prices often and arbitrarily, according to Lalit Thukral, President of the Noida Apparel Export Cluster (NAEC) and an executive member of the AEPC, but the purchasers or importers are not prepared to increase their pricing as well. This has exacerbated the situation for exporters, particularly in Noida and Greater Noida.
