Association of Buying Agents for Textiles (ABAT) has requested the central government to streamline yarn price by restricting exports
Coimbatore: Association of Buying Agents for Textiles (ABAT) has requested the central government to streamline yarn price by restricting exports.
'ABAT' President, V. Elangovan issued a press release which stated that, "Every business is to make decent profits to note an abnormal one in this competitive world at the cost of down streaming industries going into doldrums. This is exactly happening in the spinning sector as there is no proportional price increase when compared to the cotton prices.
Most disheartening is the cartelisation of the spinning community. We as buying agents are disappointed that a section of the trading Community alleging us for diverting the exporters woes. We are living in a global village completely connected digitally and any market information is known to the importers at the same movement we know it. 90% of the products that we make in Tirupur are essential core products and only 10% are catered to bigger brands and high fashion."
"We have been able to get price up charge wherever brands and high fashion orders are involved. In such cases buyers have enough margin to accommodate our requests. In terms of core products the prices are uniform globally. Factories work on wafer thin margins and additionally we have to compete with countries which enjoy free trade agreement."
"Considering the welfare of above facts, we request all trade associations to work unitedly in bringing down the yarn prices and stability in the supply. We hope the government takes note of this and streamlines the yarn prices through various measures by restricting yarn exports. If we fail to handle this unitedly, we will be killing the golden goose.
MSME's are the major community affected which generates higher employment next to the agriculture."