Apparel exporters’ body AEPC urged the government to take immediate measures to contain rising prices of raw materials as the continuous surge has impacted the entire value chain of the industry.
The price of cotton yarn, which was around Rs 376 per kilogramme in March, rose to Rs 406 in April and further to Rs 446 a kg as of now, the Apparel Export Promotion Council (AEPC) said. The prices of yarn have more than doubled from Rs 200 per kg witnessed 18 months ago, it said.
Flagging the continuous increase in the cost of cotton yarn which is critical to the apparel industry, AEPC sought the government’s immediate intervention in order to meet the country’s annual export target. “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 NarendraGoenka said that with export orders in hand, the industry is making efforts to increase its production capacity. However, the continuous rise in the cost of raw material has impacted the entire apparel value chain and led to an increase in the garment price.
The apparel exporters have been facing a lot of resistance by the buyers towards placing new orders due to this continuous increase, he said, adding that the Indian traders are already losing out to its competitors in Bangladesh due to their FTAs (Free Trade Agreements) in markets like the European Union.