Soaring Prices Have Led To A 15% Shrinkage In India'S Clothing Exports.

Soaring prices may cause India's clothing exports to shrink.

The reason is: 1) the demand of the developed countries is hit by high price; 2) the cotton price in February is high and may continue to rise; 3) the government restricts the export of yarn, but the intensity is still not enough.

An industry organization said.

PremalUdani, President of the India Garment Export Promotion Council (AEPC), said buyers want to postpone orders or reduce quantities, and they want prices to fall.

In general, the price of raw materials will become more expensive and will impact consumption patterns, he said.

The price is high, which means that the export volume of India is increasing. India garment manufacturers are striving to maintain export orders, and the global cotton prices have frequently tested the highest level in nearly 6-7 months.

Cotton futures rose to the highest level of 2.0402 US dollars / pound this month.

India is the second largest producer and exporter of fiber in the world. The price of Carle -6, the largest in demand, hit a record high of 60000 rupee /candy this month.

The price of this variety is almost doubled in a year.

Due to the reduction of delivery in the domestic market, cotton prices can not be lowered from the current level. The industry says cotton output will be less than expected.

Cotton Advisory Committee forecast in January that 2010/11 cotton production in India is expected to reach a record of 32 million 900 thousand packages, an increase of 11.5% over the same period last year.

The government restricts the export of cotton yarn in the current financial year, so as to ensure that domestic clothing enterprises can buy raw materials.

However, insiders say that the government's efforts to restrict exports are inadequate.

They say there is hardly any cotton in the domestic market now.

The India Garment Export Promotion Committee predicts that according to the value, India's clothing exports will increase by 6% in the current financial year, reaching 11 billion US dollars, and 10% in 2011/12.

The clothing Export Promotion Committee expects that the price of Chinese products will become more and more expensive due to the increase in labor costs. Meanwhile, as the price increases affect the volume of sales of the suppliers, it is still worth paying attention to whether or not to buy Chinese clothing.