High cost of raw materials is a major issue faced by the textile sector, as in the case of engineering industry, and apparel exporters have appealed to the textile industry to ensure stability of prices.
In a communication to textile mills, A. Sakthivel, Chairman of Apparel Export Promotion Council, said the price of yarn was increased by `10 a kg in January too. However, the price of warp yarn had come down by `15 a kg. While cotton prices had not gone up, yarn prices had risen.
International buyers were not agreeing to a price increase for cotton garments as other countries were not asking for it. There was an improvement in orders from the U.S. and Europe and this was the right time for garment manufacturers to tap it. Hence, yarn suppliers should maintain the December price of yarn and should ensure regular supply of the raw material to garment units, he said.
T. Rajkumar, Chairman of National Committee on Textiles and Clothing, said cotton prices had just stabilised and warp yarn prices had also come down. The prices of other varieties of yarn would also stabilise shortly.
