In order to let domestic fabric and apparel manufacturers stay competitive, members of Powerloom Development and Export Promotion Council (PDEXCIL) have sought special export incentives for fabric and apparel makers back home. India’s textile and clothing manufacturers have been losing in competition to international counterparts in Bangladesh and China owning 70 per cent rise in yarn prices and high export demand. To support MSME exports, PDEXCIL members urged the government to provide providing intensives in the form of subsidy due to increased cost of yarn, logistics and raw materials over the past one year.

Bhart Chhajer, Former Chairman, PDEXCIL estimates, India’s yarn exports to China doubled in value terms and so have those to Bangladesh. Yarn exports to China increased over the past nine months especially after the US and the UK imposed a ban on procuring cotton from China’s Xin Jiang province, as a result of which Indian yarn makers gained in terms of order volumes.

While calling this a boon for domestic yarn makers, Chhajer says, the industry is not getting enough realization. Secondly, surging cotton prices have also boosted yrarn prices, increasing inputs costs and making Indian products less competitive in the international market.