Price upset SME apparel exporters
The SME –dominated apparel export segment in India is disturbed because of the distinct rise in price of the raw materials for apparels, over the last nine months.
The Apparel Export Promotion Council (APEC) has said that there has been a fall in apparel exports. Vijay Mathur, deputy secretary general of APEC said that there has been a decline of 2.6 per cent in the total volume of exports during 2009-10 dropping to USD 10.6 billion from USD10.9 billion in 2008-09. There are three main reasons that have led to the slippage. First is the dependency on the American market. Secondly the appreciation of the Indian currency against dollars and the steep rise in prices of fabric raw materials between 30-98 per cent has disturbed the supply.
KL Mahajan said that although the demand quotient varies for different apparel products there is a general high demand in the country as well as overseas. The demand for cotton is as much in India as it is in abroad. But the hike in the raw material prices, supply of apparels has been going down from September 2009 leading to widening of the demand supply gap.
The SMEs in the domain are earnestly hoping that the global demand for the apparels increases further so that it will be easier for them to cope with the crisis.