Finally, Indian textile and apparel industry gets some immediate support from the Government, as Cotton Corporation of India (CCI) reduces cotton prices by around Rs. 1,500 per candy (356 kg).
It is pertinent to mention here that the cotton yarn prices have consistently increased in the last four months. Cotton has gained over 13 per cent since the beginning of this year, with prices rising nearly 10 per cent in February.
High prices of cotton yarn and unpredictability in its availability have been affecting the entire value chain and having an adverse cascading effect on garment exports.
Apparel industry reacted positively on this step and hoped that his move will help them on ground level also. The move is significant as it will help reduce the burden on apparel exporters across the country.
Dr. A. Sakthivel, Chairman, Apparel Export Promotion Council (AEPC), thanked Textiles Minister Smriti Irani for her help in getting the CCI to reduce cotton prices.
“We wholeheartedly thank you for meeting us on 18 March 2021 to discuss the issue of yarn price increase,” Dr. A. Sakthivel wrote in a letter to the Hon’ble Textiles Minister.