Melvyn Thomas , TNN, Dec 18, 2010, 10.01pm IST
SURAT: Fearing textile ministry might put a cap on export of polyester yarn as demanded by Federation of Indian Art Silk Weaving Industry (FIASWI) to stabilise yarn prices in the domestic market, the spinners have reduced the yarn prices by almost Rs 8 per kilogram in the past few days.
Following sharp rise in the prices of polyester yarn after November, FIASWI members had put forth a demand to put a cap on the export of polyester yarn as it was done in the case of cotton yarn export to stabilize the domestic market. A memorandum in this regard was submitted to the textile secretary two weeks ago.
FIASWI members claimed that the demand for synthetic yarn by textile producers, mainly in China and Pakistan, following dramatic shortage of cotton supply had increased export orders from India. Following increase in export orders, the spinners had increased the yarn prices by more than Rs11 per kilogram for the domestic textile users.
Market sources said the spinners have reduced Rs 8 per kilogram in the polyester yarn prices and that further reduction is expected shortly. The weavers are closely watching the yarn price movements and the purchase is likely to start once the prices come down.
Arun Jariwala, chairman of FIASWI, said, "Reduction in the yarn prices could be attributed to the demand to put a cap on the yarn export. The price reduction is good for the weaving sector and the entire textile chain."
According to Jariwala, the increase in the prices of yarn has been playing havoc with the weaving, processing and the embroidery industries. Most of the units were seriously contemplating closure, which could have had its effect on the ancillary industry downstream and suspension of employment.
"The spinners should think of the domestic yarn users rather than looking at the huge profit margins in the export," he added.
www.meherinternational.com
ReplyDelete