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Indian Leader Calls for Yarn Price Controls

Ramagopalan, the leader of the Indian religious and cultural organization Hindu Munnani, has reached out to the Indian central government to encourage them to create a high-level committee charged with fixing the price of yarn. The committee would be tasked with implementing protectionist measures to protect the textile clusters in Tirupur.

According to Ramagoplan, recent price moves have made it difficult for buyers to book orders.

“At present, the frequent wide fluctuations and uncertainty in the prices of yarn are causing hardships to the apparel manufacturers when it comes to quoting the prices of end products to the buyers.

“Because of the swings in prices, the entrepreneurs are in a dilemma as cost of yarn at the time of taking an order might be low only to go up suddenly during the execution of orders. This affects the profit margins considerably,” he said on Wednesday while calling on the government to address the issue.

He also called on the government to control cotton exports, echoing back to last year’s export restrictions and ban which were struck down following protests from the international community and concerns that it would cause plantings to fall.

Fluctuations can make it difficult for manufacturers to anticipate their production costs. This can make them reluctant to quote a firm price, knowing that they may need to renegotiate as the production date approaches. On the buyer side, a lack of firm quotes makes it more difficult for them to place orders, since they can’t accurately estimate their costs.

In response to the power crisis in the state of Tamil, he requested that entrepreneurs be given interest-free loans from the government. He referenced successful efforts in the state of Gujarat.