Garment Exports Will Be Affected Due To Increase In Yarn Prices

Garment exports are likely to be affected due to an increase in yarn prices.

Due to the continuous increase in the prices of cotton yarn, there is a possibility that garment exports will be affected.

According to garment exporters, the price of yarn has increased by 10 percent in the last one month and up to 100 percent in the last 18 months.

This is increasing the cost of manufacturing garments and may affect their competitiveness. Garment exporters said that mainly due to the increase in the export of yarn, the price of yarn has gone up.

The Apparel Export Promotion Council (AEPC) has sought the intervention of the Ministry of Commerce and Industry to check the rise in yarn prices.

The price of cotton yarn was Rs 376 per kg in March this year, which increased to Rs 406 per kg in April this year. A year and a half ago, the cost of cotton yarn was Rs 200 per kg.

According to AEPC Chairman Narendra Goenka, the continuous increase in the cost of raw materials is affecting the entire chain of apparel.

This may make it difficult to achieve the target of readymade garments in the current financial year 2022-23.

The export target of readymade garments in the current financial year is $ 20 billion.

He said that the exporters also have ordered and they are also preparing to increase their production, but due to the increase in raw material prices, production expansion may make a difference.

Apart from this, due to rising costs, exporters are also having to negotiate a lot with buyers in taking new orders.

Received 18 proposals for setting up a mega textile park

Under the PM Mega Integrated Textile Region and Apparel Park (PM Mitra) scheme, 13 states of the country have expressed their willingness to set up textile parks in their respective states.

These states have submitted 18 proposals to the Ministry of Textiles for setting up the park.

According to the Ministry of Textiles, officials of Andhra Pradesh, Bihar, Chhattisgarh, Gujarat, Karnataka, Madhya Pradesh, Maharashtra, Odisha, Punjab, Rajasthan, Tamil Nadu, Telangana, and Uttar Pradesh have outlined 18 proposals to set up PM Mitra Parks in their respective states.

PM Mitra Park will provide an opportunity to create an integrated textile value chain from spinning, weaving, processing, dyeing, and printing to garment manufacturing, etc at one place and thereby reduce the cost of the industry.