The garment exporting community has sought a roll-back in the price of the cotton yarn to last month’s price.
Voicing concern over the rising price of the yarn, garment exporters have appealed to the mill sector to consider a reduction of Rs 8 a kg.
Besides appealing to the mill sector, various stakeholders of the garment industry sought to represent their plight to the powers-that-be as well, seeking immediate intervention.
(Garment industry stakeholders include representatives from TEA, Southern India Hosiery Manufacturers’ Association, KNITcMA, TEKMA, TEAMA, TIF, SIIMKA, TEKPA, Computer Embroiders Association, Tirupur raising association, SISMA, New Tirupur hosiery Garments and Small Manufacturers Association among others.)
The associations categorically stated that they do not have any objection to farmers getting the right price for the cotton produced by them, but the Cotton Corporation of India (CCI) should sell cotton only to actual users and not to the traders.
Demanding suspension of cotton exports for three months, garment industry sources pointed out that cotton exports had already crossed the 90-lakh bale mark.
“Yarn exports (registered with DGFT) in five months touched more than 590 million kgs.
There is a need to suspend yarn exports as well, considering that the Cotton Yarn Advisory Board had estimated 1000 mkg of cotton yarn exports for the whole year, and at this pace, it might well cross the mark,” said TEA President A. Sakthivel.
While stating that the sustenance of the garment industry is at stake and appealing for early implementation of the free trade agreement with the European Union, Sakthivelsaid that if the Government fails to relent to their request, the associations would decide on the next course of action at the next meeting.