Close on the heels of a nationwide strike by garment makers, cotton-based home furnishings manufacturers and exporters from Panipat in Punjab have decided to go on a day-long strike on Thursday in protest against the sharp rise in cotton and yarn prices amid unabated exports.
In a statement, the Panipat Exporters Association said that almost 60% rise in cotton prices in the last three months has seriously threatened the cotton-based home furnishing industry of Panipat as cotton yarn is a major portion of the total cost of home furnishing products.
Huge increase in cost of cotton and cotton yarn because of unchecked export of cotton and cotton waster has pushed up their cost of products as well. They said, in export, orders are obtained for a delivery schedule of three to four months (in certain cases, even for 6-12 months), hence the sharp rise in price of raw cotton has not only eaten away the profit of exporters, but in many cases they are even selling at a loss because buyers haven?t agreed to raising the prices which leads to an increase in closure of units.
? Sharp increase in prices of cotton has lead to closure of 30-35% looms of home furnishing industry at Panipat and unemployed around 2 lakh direct and indirect workers,? Prem Sagar Vij, president of Panipat Exporters Association said. The association said it should be endeavor of a prudent export policy to encourage export of value added products instead of raw materials and intermediate goods.
?While average export price of raw cotton is Rs120 per kg and cotton yarn is Rs 210 per kg, but average export price of home furnishing products is approximately Rs 300 per kg. So to export cotton, cotton waste and cotton yarn instead of cotton textile is not a prudent export policy,? Vij said.
Factually, there is an acute shortage of raw cotton in the world. India is second largest producer of raw cotton. Export of cotton or cotton waste to our competitors, the exporters association said. ? If we do not export raw cotton, cotton waste or cotton yarn, our competitors will not be able to compete with us. So, by permitting exports we are creating trouble for our own industry and helping our competitors,? Vij added.