Garment exporters from all over India are protesting the high cost of cotton and cotton yarn
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25 January, Mumbai: 2022
The garment sector has been vocal about the high cost of cotton yarn and textiles, claiming that growing costs are putting a strain on exporters. The Noida Clothing Export Cluster (NAEC), the city's largest apparel trade association, has asked the government to intervene immediately.
To boost the industry, NAEC President Lalit Thukral advised limiting cotton exports, eliminating the 10% cotton import fee, and developing a framework to manage cotton and other raw material prices.
He claimed that the high cost of cotton yarn and textiles is a major issue for the clothing sector. Cotton prices have risen by as much as 80% in the previous several months. Cotton makes almost 75% of the raw material used in garment manufacture. "The unexpected rapid spike in the price of cotton provided a big challenge to garment producers and exporters," he added, "since it hurts the manufacturing cost, which has climbed several times."
According to Vimal Shah, President of the Garment Exporters Association of Rajasthan (GEAR), it has become hard to absorb a 40-50 percent increase in fabric costs while remaining competitive. "
Yarn exports should not come at the expense of clothing," he remarked. Thousands of people work in the clothing business. If the clothing sector falls, yarn sales will be insufficient to compensate for the loss because it adds little value." Garment exporters in Tirupur have already staged a strike to draw the attention of the government to this issue.
It's also worth noting that one of the key reasons that garment exporters are losing orders and experiencing severe competition in the global export market is the high cost of raw materials.
Simultaneously, they are losing the confidence of importers and purchasing firms. Small and medium-sized exporters face additional problems as a result of the capital and liquidity shortages. They face a slew of new issues as a result of Covid-related interruptions.
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