Apparel exporters’ physique AEPC on Wednesday urged the federal government to take speedy measures to include rising costs of uncooked supplies as the continual surge has impacted all the worth chain of the trade.
The worth of cotton yarn, which was round Rs 376 per kilogramme in March, rose to Rs 406 in April and additional to Rs 446 a kg as of now, the Apparel Export Promotion Council (AEPC) stated in an announcement.
The costs of yarn have greater than doubled from Rs 200 per kg witnessed 18 months in the past, it stated.
Flagging the continual enhance in the price of cotton yarn which is important to the attire trade, AEPC sought the federal government’s speedy intervention with a view to meet the nation’s annual export goal.
“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 stated that with export orders in hand, the trade is making efforts to extend its manufacturing capability. However, the continual rise in the price of uncooked materials has impacted all the attire worth chain and led to extend within the garment worth.
“The apparel exporters have been facing a lot of resistance by the buyers towards placing new orders due to this continuous increase,” he stated, including that the Indian merchants are already shedding out to its rivals in Bangladesh on account of their FTAs (Free Trade Agreements) in markets just 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 stated.
Goenka additionally added that the value realisation and overseas change on account of the export of clothes as value-added merchandise is far increased than these from uncooked materials exports.
The authorities ought to encourage exports of value-added merchandise like attire as an alternative of exporting uncooked supplies like cotton and cotton yarn, he stated.
Source: www.financialexpress.com”