With increase in yarn prices by almost 70%, backed by rising prices and high export demand, domestic manufacturers of textiles and apparel are losing their competitiveness to international counterparts like Bangladesh and China.
In a bid to let the domestic fabric and apparel manufacturers stay competitive, members of Powerloom Development and Export Promotion Council (PDEXCIL) have sought special export incentives for fabric and apparel makers back Home.
Gujaratis home to some 200 spinning units with an installed capacity of around 50 lakh spindles, according to estimates by All Gujarat Spinners Association (AGSA). According to PDEXCIL members, the government must support MSME exporters by providing intensives in the form of subsidy due to increased cost of yarn, Logistics and raw materials over the past one year.
The increase in cotton prices which has led to the increase in yarn prices was a key issue represented. In the past, Industry players had demanded that yarn exports be restricted so that domestic demand can be met at competitive rates which will help makers stay competitive.