Indian apparel exporters’ body Apparel Export Promotion Council (AEPC) is seeking quick measures to check raw material price hikes as the price of cotton yarn was around Rs 376 per kilogramme in March, rose to Rs 406 in April and further to Rs 446 a kg as of now
Apparel exporters’ body AEPC on Wednesday urged the government to take immediate measures to control raw materials price hikes impacting the entire value chain of the industry.
The price of cotton yarn, which was around Rs 376 per kilogramme in March, rose to Rs 406 in April and further to Rs 446 a kg as of now, the Apparel Export Promotion Council (AEPC) said in a recent statement.
The prices of yarn have more than doubled from Rs 200 per kg witnessed 18 months ago flagging the continuous increase in the cost of cotton yarn which is critical to the apparel industry. Considering this situation AEPC sought the government’s immediate intervention in order to meet the country’s annual export target.
“On behalf of the apparel industry, AEPC has requested the government to take immediate measures so that the RMG (Ready-Made Garments) export target of USD 20 billion for 2022-23 is met,” it added.
AEPC chairman Narendra Goenka said that they have huge export orders in hand, the industry is making efforts to increase its production capacity, however, the continuous rise in the cost of raw material has impacted the entire apparel value chain led to increase in the garment price.
“The apparel exporters have been facing a lot of resistance by the buyers towards placing new orders due to this continuous increase,” he said, adding that the Indian traders are already losing out to its competitors in Bangladesh due to their FTAs (Free Trade Agreements) in markets like the European Union.
“The prevailing high prices will only result in increasing the competitiveness gap of India viz-a-viz our competing countries, diverting global orders to our competing countries, along with the associated jobs and domestic value addition potential,” he said.
Goenka also added that the price realization and foreign exchange on account of the export of garments as value-added products is much higher than those from raw material exports.
The government should encourage exports of value-added products like apparel instead of exporting raw materials like cotton and cotton yarn, he said.