Apparel Online India Magazine August 1st Issue 2018 | Page 9

MIND TREE connect MGNREGA with textile or apparel industry which could have been very beneficial for all. One has to understand that now garment manufacturing on large scale is also a kind of social welfare. If an exporter is making some money by giving employment to thousands of workers, it is a type of social welfare. By having factories in Anantapur (Andhra Pradesh), the garment exporters offered employment to more than 30,000 people, and every month crores of rupees are being circulated in this area’s economy. There are many more such examples if one analyses deeply. So why can’t the Government have a long-term policy framework combining the entire supply chain so that the industry can plan and work accordingly? Tushar Jain, Director, Pasupati Spinning and Weaving Mills, Delhi Yarn prices have already gone up and till December, the prices are not expected to come down. So, I feel the increase in price of fabric, due to the new MSP, will have a significant influence on the garment manufacturers or exporters. Mills are not taking note of this even now, so garment manufacturers will continue to bear the effects of this decision till they receive sufficient orders. When they will be having fewer orders, spinning mills will be forced to bear the increased cost. Though buyers and retailers are also aware of all these developments, they will not counter this decision. Overall it is going to hurt margins of garment exporters who are already under pressure. NEXT MINDTREE QUESTION A few days ago, Tirupur Exporters’ Association (TEA) requested its members to ask their buyers to increase the garment prices by 10 per cent as overall costing is increasing. TEA felt that the continuation of the same prices would certainly lead to a more difficult situation making it less viable for exporters to sustain in business. Top sourcing professionals are of the opinion that such initiatives will not solve any problem and might make them more worse. Orders will drift away from India if buyers feel prices are increasing. Suppliers must, therefore, work towards streamlining and eliminating losses in the supply chain. Rajeev Sharma, Proprietor, Radhakrishan Overseas, Lucknow I feel that there will be no major impact, but we have to see how this decision takes shape in future. If the overall increased cost of fabric is 10-15 per cent, then it will not have any serious or negative impact on order bookings. It will be considered a routine, and hopefully will not affect us in any way. POST YOUR COMMENTS www.apparelresources.com [email protected] Being a stakeholder of the industry, how do you see this issue? What can be the plausible solution…? www.apparelresources.com | AUGUST 1-15, 2018 | Apparel Online India 9