Rising yarn and fabric prices are causing loss of orders for garment exporters, says Vimal Shah, President, Garment Exporters Association of Rajasthan. He adds, it has become impossible to absorb the increase of 40-50 per cent in fabric prices and remain competitive. Domestic exporters are finding it tough to convert queries into orders as they cannot match the price countries like Bangladesh offer, Shah adds. They cannot offer the rates offered by other countries for their orders. This is impacting their profit margins, he further states.

Cotton prices have escalated owing to supply constraints with hoarding by traders and speculation in the commodities markets further adding to woes. Garment manufacturers catering to the domestic market as well, have been impacted due to COVID lockdowns as organized retailers, who sourced from them, did not pay for 6-12 months.