AEPC stated that it will contribute to a third-party study on the price increases in yarn.
Garment exporters have stated that the Textile Ministry’s intention to discover proof of cartelisation as a result of unexpected increases in cotton yarn prices will assist to control price rises, prevent supply chain imbalances, and preserve lakhs of jobs.
“We are pleased to observe that the Textile Commissioner’s office has been directed to seek proof of cartelisation, which is causing these increases and harming the sector as a whole. With the Ministry’s assistance, such a research can create precedents for data-driven supply chain imbalance management,” said A Sakthivel, Chairman of the Apparel Export Promotion Council (AEPC).
According to an AEPC release, Textile Minister Smriti Irani stated at an event organised by the Cotton Textiles Export Promotion Council (TEXPROCIL) that the Textile Ministry, in collaboration with the Textile Commissioner’s office, is seeking a solution in partnership with the industry for the overall interest of the industry.
According to the statement, the Minister stated that there is a need for a third-party investigation of unexpected spikes in cotton yarn costs, which influence the prospects across the value chain of Indian textiles.
Sakthivel stated in a letter to the Textiles Minister that AEPC will collaborate on a third-party investigation on the price increases in cotton yarn. “He stated that these actions will aid in reducing the rapid increase and unpredictability in cotton and yarn supply, which is impeding the garment industry’s order book planning and overall competitiveness of the whole value chain,” according to the statement.