The Apparel Export Promotion Council (AEPC) has said that a probe into the sudden spike in cotton yarn prices will prevent supply chain imbalances and protect lakhs of livelihoods.
AEPC Chairman A. Sakthivel said: "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 thee ministry's support, such a study can set precedents for a data driven management of the supply chain imbalances."
The statement comes after Textiles Minister Smriti Irani, addressing the award function of the Cotton Textiles Export Promotion Council (TEXPROCIL) earlier in the day, said that the ministry along with the Textile Commissioner's office seeks to find a solution 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," she said.
"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," the minister added.
Sakthivel, in a letter to the Textiles Minister, said that AEPC will fully cooperate for a third party study with regard to the spikes in cotton yarn prices. He said that these steps will help in curbing the steep increase and unpredictability in availability of cotton and yarn which is hampering the apparel industry's order book planning and overall competitiveness of the entire value chain.
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