Published
Mar 31, 2021
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AEPC requests government restrictions on cotton yarn exports

Published
Mar 31, 2021

On March 27, the Apparel Export Promotion Council  asked the Union Government to take measures to curb cotton yarn prices and increase supply in India including imposing restrictions on exports and levying export duties. 

The AEPC is urging the government to address issues in the yarn supply chain

 
AEPC chairman A Sakthivel stated on Saturday that cotton yarn prices have risen consistently for the past four months in India which has affected the industry’s entire value chain, the Press Trust of India reported. In order to stop this trend, Sakthivel urged the government to step in to aid handloom and powerloom weavers.
 
“We request immediate intervention to increase the supply of yarn to domestic manufacturers,” said Sakthivel, the Press Trust of India reported. “We suggest that quantitative restrictions should be imposed on exports of cotton yarn, specifically on cotton yarn of 26 counts and above.”

“The rate of increase in yarn prices far exceeds that of cotton prices,” said Sakthivel. “The steep increase in prices and unpredictability in availability of yarn means that garment exporters cannot honour commitments they made to their customers. This has also affected handloom and powerloom weavers badly. Looms have stopped production. Due to this, the domestic industry has also got affected adversely.”

The AEPC believes that keeping more cotton yarn in India will help to increase garment exports. It would also reduce yarn spinners’ current high profits and enable other parts of the supply chain to recover.

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