homemarket Newscommodities NewsApparel exporter body warns of missing export target amid rising cotton, yarn prices

Apparel exporter body warns of missing export target amid rising cotton, yarn prices

Apparel Export Promotion Council (AEPC) Chairman Narendra Goenka warned that rising cotton, yarn prices may affect the country's apparel exports target of USD 19-20 billion during the current fiscal. He suggested the government to impose a temporary ban on exports of cotton and cotton yarn like Indonesia has done for its palm oil.

By PTI May 19, 2022 5:21:28 PM IST (Updated)


The unabated surge in prices of cotton and cotton yarn may affect the country's apparel exports target of USD 19-20 billion during the current fiscal, AEPC Chairman Narendra Goenka said on Thursday. He said that the prices have jumped by about 125-130 percent during the last 18 months and one of the reasons for that would be "unchecked" exports of cotton and cotton yarn.
He suggested the government to impose a temporary ban on exports of cotton and cotton yarn like Indonesia has done for its palm oil. "In 2021-22, the exports were USD 16 billion and we are targeting USD 19-20 billion this fiscal. But because of the price rise, it looks to be a concern on achieving the target. The industry is facing a big challenge at the raw material front," Goenka said.
He added that if the price rise does not stop, global customers would start looking at sourcing options other than India. "About 60-70 percent of cotton and cotton yarn are going to our competitor countries like Bangladesh and Vietnam. This is a worrisome situation," he said.