Welcoming the textile ministry’s intent to find evidence of cartels that have led to a sudden spike in cotton yarn prices, India’s Apparel Export Promotion Council (AEPC) chairman A Sakthivel recently said a solution to the high prices will prevent supply chain imbalances and protect lakhs of livelihood. He, in a letter to the textiles minister, said AEPC will fully cooperate for a third party study on the issue.
“We are happy to note that the Textile Commissioner’s office has been advised to find evidence of cartelisation which is resulting in these spikes and hurting the overall interest of the industry. With [the] ministry’s support, such a study can set precedents for a data driven management of the supply chain imbalances,” Sakthivel said in his letter.
Textiles minister Smriti Irani, while addressing the award function of the Cotton Textiles Export Promotion Council (TEXPROCIL) recently, said that the ministry along with the Textile Commissioner’s office seeks to find a solution to the problem in partnership with the industry for the overall interest of the industry.
“There is a need to undertake a third party study of sudden spikes in cotton yarn prices which affects the prospects across the value chain of Indian textiles. It cannot be accepted that data to the same is not available. The time has come that to benefit a few, the plenty cannot suffer. I am hopeful that especially in this statistical study some forensic details can also be found by the Textile Commissioner’s office,” she said.
Sakthivel said these steps will help curb the steep increase and unpredictability in availability of cotton and yarn that is hampering the apparel industry’s order book planning and overall competitiveness of the entire value chain.
Fibre2Fashion News Desk (DS)
Welcoming the textile ministry’s intent to find evidence of cartels that have led to a sudden cotton yarn price spike, India’s Apparel Export Promotion Council (AEPC) said a solution to the issue will prevent supply chain imbalances and protect livelihoods.In a letter to the textiles minister, AEPC said it will cooperate for a third party study on the issue.