I as a manufacturer & exporter of garments, want to initiate this topic & attract attention towards this serious issue of rising prices of cotton and blended yarns. In the last 2 months, apparel manufacturers have seen steep rise in cotton & cotton blended yarns. By steep, I mean 20-30% increase. Due to increase in demand by neighboring, raw cotton's export has increased tremendously. This has resulted in shortage of raw material for yarn mills & hence increase in yarn prices. This issue was raised up with concerned ministry by some Associations and the Ministry was ready to impose a ban on Cotton export, but after the cotton farmers threatened the Govt. of dire consequences and extreme reactions, no action was taken.

If the prices remain this high, the industry is going to suffer a lot. Exporters are losing orders, manufacturing units may face lock down, thousands of workers will be unemployed.

When the demand for raw cotton decreases in the international market, the cotton farmer's are going to sell their product to whom? Till then the Indian industry might have lost huge international business.

If we look at this issue, with a broader sense in the long run, everybody is in a loss because in the end, the country's industry consumes major portion of cotton produce, provides employment to lakhs of people, earns foreign exchange. In the long run, windfall gain through cotton exports is not going to help our economy, its the smooth running of the whole industry that is going to improve the economy. And I hope soon some measures are taken in this direction.

Mr. Mohan Gulati

MOHAN KNITTERS

Partner, MOHAN KNITTERS
Ludhiana, India

Free Member, Joined :12/15/2007
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