AEPC calls for calibrated cotton exports, unveils Common Compliance Code

The Apparel Export Promotion Council (AEPC) has urged the Government to ensure that exports of cotton/yarn are calibrated and do not cause supply disruption to producers of garments for export and domestic markets.

The Council said the prices of cotton/yarn had started sharply rising again due to two reasons: announcement by the Directorate General of Foreign Trade (DGFT) that cotton will be allowed for exports from October 1 and unexpected loss of cotton crops in Pakistan due to floods.

"Yarn mills have once again stopped deliveries and are talking about minimum Rs 10 per kg price increases for September delivery," AEPC chairman Premal Udani told a press conference here yesterday.

Others present at the press conference included heads of industry associations like the Garment Exporters Association, the Apparel Exporters and Manufacturers Association, the Tirupur Exporters Association, the Apparel and Handloom Manufacturers Association and the Garment Exporters Association of Rajasthan.

"Our country has a unique opportunity to maximise garment exports due to various problems in the neighboring countries. However, if raw materials are allowed to be freely exported and consequently there are hefty price increases as well as shortages in the domestic market, it will cripple our industry," Mr Udani said.

According to him, one kg of cotton yarn may fetch Rs 125 in international markets. But if a garment made by one kg of cotton yarn is exported, it will fetch Rs 750 and the value addition is six times more than cotton yarn exports, he said.

Mr Udani also spoke about AEPC’s Common Compliance Code. "It is a first-of-its-kind, industry-driven and industry-owned compliance project which not only aims at developing an India-specific code of ethics but also offers training and ways to build capacities," he said.

The code identifies all legal requirements and standards including those forbidding child labour, forced labour, harassment or abuse, non-discrimination, health and safety, environmental requirements, freedom of association, collective bargaining, hours of work, wages and benefits as well as subcontracting.

India exports garments worth $ 11 billion annually. The AEPC represents about 8,000 small, large and medium exporters across the country.

NNN