Apparel industry is facing a severe problem of high cost of cotton yarn and fabrics.
During the last couple of months the cotton prices have been hiked up to 80 per cent.
The prices of the cotton per candy of 335 kg went to Rs 74,000 from Rs 37,000. In apparel making, 75 per cent of raw material used is cotton
The industry in Tirupur was also on a two day strike to oppose the increasing yarn prices.
The industry is already combating a great stress because of restrictions and rise of Covid 19 cases all over India.
“Indian exporters are losing export orders and facing tough competition in the global export market. Moreover, they are also losing confidence of the importers and the buying houses,” said Lalit Thukral, President, Noida Apparel Export Cluster.
MSME apparel production units are facing the high price rise issue along with capital and liquidity crunch.
Moreover, prices of the fabrics have been increased to Rs 40-50. Bangladesh, Vietnam Thailand and other countries are manufacturing apparels with low production cost because of cotton imported from India and posing strong competition to India in the global market.
India is also losing its share in apparel exports to competitors like Bangladesh, who have free duty trade agreements with EU.