New Delhi, Mar 25 (KNN) The continuous increase in cotton price is reducing international competitiveness of the Indian textile value added industry and also affect exporters negatively said Confederation of Indian Textile Industry (CITI).

While talking to KNN India Chairman of CITI, Sanjay Jain said, “Cotton prices have started rising at a time when the rupee is appreciating. It is a double whammy for textile exporters as it will impact the competitiveness of Indian products in the international market and hit price realization in rupee terms.”

He further added that both these movements are reducing international competitiveness of the Indian Textile value added industry and would be hamper the improving export trend as cost pressure will increase prices of yarn, fabric & garments impacting competitiveness.

Prices in the cotton futures market has moved up 7 per cent from the low of Rs 19,970 per bale (one bale is 170 kg) in February to Rs 21,360 in March on reports of improving demand from China and domestic mills.

Jain said, “Cotton prices have spurted by Rs 3,000 per candy (from Rs 41500 to Rs 44500) in less than a month’s time - leading to cost pressure on the entire cotton Textile and apparels value chain.”

The situation further aggravated by the appreciating rupee which has reduced realization for exporters, he said.

He added that exporters cost has gone up, while realizations have come down - so being hit both ways.

Published On : 26-03-2019

Source : Knn India