Apparel Export Promotion Council (AEPC), write to Textile Ministry demanding reduced yarn price
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10 January 2022, Mumbai:
According to the letter written by the Apparel Export Promotion Council, with an increase of ₹7,000 in the price of the cotton, the yarn price reached ₹401, whereas it should be around ₹359.
The Apparel Export Promotion Council has requested the Ministry of Textiles to suggest the mills to bring down the yarn price by ₹40 per kilogram.
Apparel exporters in Gautam Budh Nagar have written a letter to the Ministry of Textiles to decrease the prices of yarn, which is adversely affecting the garment industry in the district, they said on Monday.
According to the letter written by the Apparel Export Promotion Council, the cotton price per candy in October 2021 was ₹67,000 and yarn price ₹331. The cotton price was increased to ₹74,000 this January -- a hike of ₹7,000, with the yarn price set at ₹401 -- an increase of ₹70.
“The rise in the prices is not according to the formula adopted by the industry. According to its price increasing formula, for every ₹1,000 increase in the cotton price, the yarn price will also be increased between ₹3.50 and ₹4.
But now, with an increase of ₹7,000 in the price of the cotton, the yarn price reached ₹401... whereas it should be around ₹359,” said A Sakhtivel, chairman of AEPC.
The council has requested the ministry to suggest the mills to bring down the yarn price by ₹40 per kilogram.
Lalit Thukral, president of Noida Apparel Export Cluster (NAEC) and an executive member of AEPC, the total export value of the apparel sector in India is ₹130,000 crore, of which ₹40,000 crore revenue is generated in Uttar Pradesh alone.
“Gautam Buddh Nagar is known as the ‘City of Apparel’ as it generates nearly ₹32,000 crore revenue through apparel export, out of the total ₹40,000 crore revenue generated in Uttar Pradesh... Exporters enter into a price agreement with the buyers at least six months before the supply of apparels.
Now, as the mills have been increasing the prices frequently and arbitrarily, the buyers or importers are not willing to increase the prices as well,” Thukral said, adding that this has made the situation worse for the Indian exporters, especially those in Gautam Buddh Nagar.
The district houses nearly 3,000 garment export firms.
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