TEXTILE | From Fiber to Fabrics

The Apparel Export Promotion Council (AEPC) has requested the Indian government to put a cap on the rising fabric prices, which is making it difficult for small-scale garment manufacturers and exporters to sustain their operations.

'The soaring fabric prices have put the margins of SME apparel exporters and manufacturers under tremendous pressure. If the government fails to check the towering prices, many small-scale firms in the sector will be compelled to close their units. This, in turn, would lead to massive job losses on an unprecedented scale across the country,' said Nitin Maheswari, proprietor of Ambika Synthetic Mills, a small-sized textile mill in Kolhapur.

Rakesh Vaid, chairman of AEPC, has called for the extension of 13.25% duty drawback rate to mitigate the increasing cost disadvantage for SME apparel manufacturers and exporters.

'Considering that the mounting fibre and yarn prices are hindering the growth of SME apparel manufacturers and exporters, certain incentives must be provided by the Indian government to help them stay afloat,' said Siddharth Bhutoria, proprietor of Hanuman Yarn Trading Agency, a small-sized yarn agency in Ahmedabad.

Extension of 2% duty-free scrips for exports to the US and the European Union (EU) under the 'Market Linked Focus Product Scheme', abolition of countervailing duty on textile machinery and initiation of service tax exemption for all export-related services are some of the measures being demanded by the AEPC for SMEs in the apparel export sector.

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