To control rising raw material prices, apparel exporters’ body AEPC has urged the government to take immediate measures as the entire textile value chain is getting affected by the price hike. AEPC says, cotton yarn prices rose to Rs 406 per kg in April from Rs 376 per kg in March. Prices doubled from Rs 200 per kg recorded 18 months ago, the council says.

Narendra Goenka, Chairman, AEPC affirms, the industry is making adequate efforts to increase production capacity. However, buyers are abstaining from placing new orders due to high cotton prices. Lack of FTAs in leading EU markets is adding to the woes of Indian traders. This threatens to increase competiveness gap for Indian products, diverting its orders to competitors.

The price realization and foreign exchange of garment exports is much higher than raw material exports as they are value-added products, adds Goenka. Instead of raw materials, the government should increase exports of value-added products like apparel, he opines.