The apparel sector is expecting the spinning mills to cut cotton yarn price.
Speaking to Business Line from Delhi, the Chairman of the Apparel Export Promotion Council (AEPC), A. Sakthivel said that the meeting with the Secretary, Ministry of Textiles ended on a positive note.
“The Secretary in conclusion conceded that there was an abnormal increase in the price of the cotton yarn and urged the mill sector to cut the price to the maximum at the earliest,” he said.
While the timeframe and the quantum of reduction in the price of cotton yarn was not immediately known, the downstream garment and made up sector is now hoping that the situation would improve soon.
According to the AEPC Chairman, cotton yarn price had swelled by Rs 36 a kg to Rs 248 a quintal in the last two months.
“Besides the steep increase, yarn manufacturers had also abruptly stopped supplies since March 5, causing greater anxiety for the apparel exporting community.”
The knitwear exporters, who had started booking orders since January this year, decided to move the Textile Ministry to help them import yarn against export.
“The Secretary agreed that the yarn price increase not only affected the apparel sector but the handloom and powerloom sectors as well. We are confident that yarn manufacturers will reduce the price of the 40s count to the maximum,” AEPC Chairman said.