Economy

Action against cartelisation to rein in cotton prices: Garment exporters

Our Bureau New Delhi | Updated on June 23, 2021

A Sakthivel, Acting Chairman, AEPC

AEPC said, it would cooperate for a third-party study on the spikes in yarn prices.

Garments exporters have said that the Textile Ministry’s intent to find evidence of cartelisation due to sudden spikes in cotton yarn prices will help check price rise, prevent supply chain imbalances and protect lakhs of livelihood.

“We are happy to note that the Textile Commissioner’s office has been advised to find evidence of cartelisation, which is resulting in these spikes and hurting the overall interest of the industry. With Ministry's support, such a study can set precedents for a data driven management of the supply chain imbalances,” A Sakthivel, Chairman, Apparel Export Promotion Council (AEPC) said.

The Textile Ministry, together with the Textile Commissioner's office, is seeking to find a solution in partnership with the industry for the overall interest of the industry, Textile Minister Smriti Irani said at an event organised by the Cotton Textiles Export Promotion Council (TEXPROCIL), an AEPC release pointed out.

The Minister said there is a need to undertake a third-party study of sudden spikes in cotton yarn prices which affects the prospects across the value chain of Indian textiles, the release added.

Sakthivel, in a letter to the Textiles Minister, said that AEPC would cooperate for a third-party study on the spikes in cotton yarn prices. "He said that these steps will help in curbing the steep increase and unpredictability in availability of cotton and yarn which is hampering the apparel industry’s order book planning and overall competitiveness of the entire value chain," the release said.

Published on June 23, 2021

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