Raja M Shanmugham, President said the Textile Mills have increased the yarn prices by Rs. 40 per KG for all counts on 02, May, 2022, and this has happened at a time when the survival of knitwear exporting units are at stake due to various other adverse factors like Russia – Ukraine War, increasing of accessories, job working and freight charges.
After noting the plight of Tirupur Knitwear garments exporters, Raja M Shanmugham said the knitwear garment exporters are totally blinking and are totally running out of solution, as they could not complete the orders taken already based on the previous inputs costs, leave alone the future orders. He apprehend that the severity of impact on Value Added Knitwear Garment Sector will have a cascading impact on each stages of manufacturing, banks and thousands of workers employed with these units.
Raja M Shanmugham felt that the softening of Cotton and Cotton Yarn prices could be witnessed only when the Government take a serious view and ban the Cotton and Cotton Yarn exports and this could be continued till the prices regularized in the domestic market. He pointed out that the Cotton yarn exports to our competing countries actually helped our competitors to edge over our competitiveness in our exports, with their Customs duty benefits in EU and Canada markets coupled with Government positive supportive measures. The absence of level playing field in the global market is also a major concern to our exporters.
He specifically noted that once if the buyers leave our country and resort to our competing countries, it would be difficult to bring them back to our country and therefore, it is increasingly becoming necessary to keep the existing buyers intact with us.
He appealed to the Textiles Secretary to Consider the employment, servicing of banks, value added garment exports and to protect the garment sector to use his good offices to ban Cotton and Cotton Yarn exports immediately till the time prices are stabilized and he strongly feel that thereafter, the whole textile industry will function as a Win-Win situation for all stakeholders.
