Govt to take steps to check yarn prices: Maran

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SME Times News Bureau | 05 Apr, 2010
Amid apparel industry's demand for government intervention to prevent rising yarn prices, Union Textile Minister Dayanidhi Maran said the government will take measures to protect the handloom and garment manufacturers.

"The prices of yarn have shot up affecting the handloom and garment manufacturers. We will take steps to ensure that yarn prices are available at an affordable level," Maran said on the sidelines of an exhibition cum conference on traditional industries in Chennai on Saturday.

An announcement is likely in a week, the minister added without giving any clue to what these measures would be.

Cotton yarn prices have gone up by 30 percent in the last three months, with the latest price increase brought in to effect on April 1, 2010. The members of the Tirupur Exporters’ Association had even gone on a fast against the decision.

More recently, the Garments Exporters Association (GEA) also expressed concern over the steep hike in prices of cotton and yarn.

GEA President Rakesh Vaid urged the government to introduce some sort of control on exports of cotton and yarn and stressed the need to focus more on value added exports of garments rather than raw cotton or yarn

"Besides price fluctuation, fabric availability has become a serious issue as weaving units are not making any delivery commitments," Vaid told SME Times recently.

Speaking at the event hosted by industry body FICCI, in association with the Council for Leather Exports and the Handloom Export Production Council, Maran said that while China wasn’t promoting handlooms in a big way, this industry would turn out to be a huge strength for India, as it gave craftsmen to create unique designs that could be sold worldwide.

"More business can be generated by marketing more," Maran added.