India SITMA Appeals For Immediate Government Ban On Yarn And Waste Cotton Exports

SITMA chairman M S Mathivanan said that the rise in yarn prices led to increased production costs and increased prices of finished products, which affected the lives of ordinary people.

He said the price of cotton per bales rose from 20000 rupees a month ago to 47000 rupees / bundles (352 kilograms) since the government announced that it was allowed to export cotton from November 1st.

Supplement:

India's clothing export delivery schedule is affected by the soaring price of cotton yarn. At the same time, there is a shortage of cotton yarn in the market.

Garment manufacturers feel the pressure of delivery when they enter the important spring and summer shopping season and complete Christmas and new year orders.

The price of medium roving (for socks and knitwear, such as 20s, 30s, 40s) has increased by 30-40% since January.

Yarn constitutes 60-70% of fabric cost.

Most of the exporters' orders were booked three months ago.

Many Rupp exporters ordered new year's orders a month ago.

Therefore, they can not adjust the soaring yarn prices by raising prices.

In the first six months of this calendar year, clothing exports dropped by 11%, while yarn exports increased by 80%.

In June, the export volume of spun yarn increased sharply, and the average price was high.

In June, exports totaled 9 billion 340 million rupees, an increase of 59% over the previous year.

In the first 3 months of 2010-11, 145 million kilograms of yarn were exported, worth 17 billion 640 million rupees.

But the value-added sector is in the doldrums, because once the buyer signs the order, the price can no longer be negotiated, and it is necessary to deliver the goods within 75 days.

For India's clothing sector, they face a double blow.

There is a shortage of yarn in the market, and the delivery time must be a secondary position.

Premal Udani, chairman of the India Clothing Export Promotion Association, said that her company Kaytee had difficulty finishing delivery of new year's clothing orders, but now it worries about the delivery of orders in the summer.

High priced cotton yarn adds new worries to garment manufacturers when they face many other financial difficulties.

The exchange rate between the US dollar and the rupee weakens the profits of the enterprises, and the profits of the enterprises are very thin.

Yarn prices are too high to trigger price sensitivity.

These problems have forced the price of clothing products to rise, thereby weakening India's competitiveness in the global market.

China's exports to the United States are declining, as China caters to the growing domestic demand and focuses on the domestic market.

In addition, their prices are higher and buyers are reluctant to buy high priced products. India naturally becomes the buyer's favorite source of goods, and India's demand for products begins to pick up slowly.

In such a golden opportunity, yarn price rise has become a major problem.

India will not only lose its export target of $12 billion, but will also give market share to other less developed countries, such as Vietnam, Sri Lanka, Bangladesh and Kampuchea.

These countries can enter the European market without tariff.

Bangladesh is taking up a large number of us orders. India is also facing fierce competition from Vietnam and Kampuchea. Almost 60% of the global clothing market is occupied by Bangladesh, Bangladesh products are cheaper than India 30%, and the quality is very good, which can match India products.