PDEXCIL demands for Yarn Stability to stimulate Powerloom Sector
The Powerloom Development and Export Promotion Council (PDEXCIL), the government body under the aegis of Ministry of Textiles and representatives of powerloom operators issued a press release demanding a fair mechanism for stability in yarn prices.
He said that the yarn prices to be stabilized and stay constant over a period of time to ensure that the Micro and small medium entrepreneurs (MSMEs) in the Powerloom industry did not absorbs exorbitant cost burdens.
The powerloom sector is facing problems for its existence due to frequent changeability in the yarn prices. The production cost of fabric is mainly dependent on the yarn prices, which is the main raw material for conversion to fabrics. Besides, increase in the cost of logistics and electricity tariff also add to the input cost. This results in the increase of cost of production by at least 30-35 per cent. However, due to sluggish demand of fabrics in domestic market as well as decline in export, manufacturers are unable to absorb the burden of such inflation. This has reduced their profit margin and they find it difficult even to achieve a breakeven, the release stated.
Increase in yarn prices highlights this problem and small entrepreneurs might be forced to shut shop in the coming future if this problem persists, the release concluded.
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