Struggling due to massive hike in yarn prices, apparel manufacturers have urged yarn producers and their associations for stable yarn price and normal supply of the same.
It is pertinent to mention here that Rs. 10 per kg has been increased in the month of January whereas warp yarn price has been decreased by Rs. 15 per kg. Hence, it is learnt that there is no increase in the cotton prices and the supply of cotton is also normal.
The Cotton Corporation of India (CCI) has come up with a scheme that the purchaser can block the cotton by giving very nominal advance.
Recently, a virtual meeting also took place in this regard in which Confederation of Indian Textile Industry (CITI), Apparel Export Promotion Council (AEPC), Tamil Nadu Spinning Mills Association (TASMA), Northern India Textile Mills’ Association (NITMA), The Southern India Mills’ Association (SIMA) and other associations of yarn suppliers also participated.
Apparel manufacturers, especially exporters, are especially concerned as the overseas brands and buyers aren’t giving any raise in the prices.
Buyers have logic that no country has increased the prices for cotton-based garments. As the overall situation is becoming normal, there is some improvement in order booking from Europe and the US.
At this juncture, if apparel exporters apply further pressure for price hike it may lead them to switch over from India to other competitor countries like China and Bangladesh.
If the buyer replaces India for their sourcing, then it will be very difficult to bring them back. Ultimately it will impact the apparel industry and in turn sourcing of yarn will be reduced.
So, keeping all these aspects in focus, apparel exporters have urged the yarn suppliers to maintain the yarn price as it was in December without any increase and also ensure normal supply of yarn to the apparel manufacturers.