In a bid to let the domestic fabric and apparel manufacturers stay competitive, members of Powerloom Development and Export Promotion Council (PDEXCIL) have sought special export incentives for fabric and apparel makers.
In a bid to let the domestic fabric and apparel manufacturers stay competitive, members of Powerloom Development and Export Promotion Council (PDEXCIL) have sought special export incentives for fabric and apparel makers.
With increase in yarn prices by almost 70%, backed by rising cotton prices and high export demand, domestic manufacturers of textiles and apparel are losing their competitiveness to international counterparts like Bangladesh and China. A representation was made before Union minister of commerce and industry, Piyush Goyal.
Gujarat is home to some 200 spinning units with an installed capacity of around 50 lakh spindles, according to estimates by All Gujarat Spinners’ Association (AGSA). According to PDEXCIL members, the government must support MSME exporters by providing intensives in the form of subsidy due to increased cost of yarn, logistics and raw materials over the past one year. PDEXCIL members held that India’s yarn exports to China have doubled in value terms and so have those to Bangladesh.
Estimates by PDEXCIL suggest that export of cotton yarn from India to Bangladesh as well as China have almost doubled. Yarn exports to China increased over the past nine months especially after the US and the UK imposed a ban on procuring cotton from China’s Xin Jiang province, as a result of which Indian yarn makers gained in terms of order volumes. The increase in cotton prices which has led to the increase in yarn prices was a key issue represented.
Source: The Times Of India
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