AEPC warns rising cotton prices could affect India's export target performance

By

Isabelle Crossley

Published
May 20, 2022

The Apparel Export Promotion Council’s chairman Narendra Goenka has warned the government that the spiralling cotton prices could make it impossible for the country to achieve its apparel export targets. 

Goenka warned that raw materials increasing in price is not only making it difficult for apparel exporters to ready shipments on time, it is also making India less competitive in the global market, ET Bureau reported. Goenka said that, if prices keep rising, importers from other countries will likely shift orders to India’s competitors. 
 
“In 2021-22, the exports were $ 16 billion and we are targeting $ 19- 20 billion this fiscal,” said Goenka in a statement, the Press Trust of India reported. “But because of the price rise, it looks to be a concern on achieving the target. The industry is facing a big challenge at the raw material front.”

Goenka joined the rising voices calling for a temporary ban on cotton and cotton yarn exports. “About 60- 70% of cotton and cotton yarn are going to our competitor countries like Bangladesh and Vietnam,” said Goenka. “This is a worrisome situation.”
 
In order to boost exports during the challenging time, the AEPC is organising buyer-seller meets in a number of countries to promote Indian manufacturers. The traders’ body also hopes that the free trade agreement with UAE and Australia will help to give exports a much needed boost.