Input Costs Increase And Heavy Losses To India Denim Producers

< p > in the 2 quarter ended in September, < a href= "//www.sjfzxm.com/news/index_p.asp" > India < /a > denim manufacturers continue to feel that the cost of inputs is rising.

The reason for the increase in input costs is that the increase in cotton prices has eroded the net profit of the main a href= "//www.sjfzxm.com/news/index_c.asp" denim < /a > enterprises in the second quarter, such as KG denim, Aarvee denim and export companies as well as Raymond companies. Because of the economic downturn, the demand has already been under pressure, so they can not pass the burden onto the buyers.

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< p > > a href= "//www.sjfzxm.com/news/index_c.asp" > short staple cotton > /a > price increases. Short staple cotton accounts for almost 50% of the input cost of denim producers. The cost of raw materials consumed by KG denim increased by 30% compared to the same period last year, and 1 billion 7 million 400 thousand rupees in the 2 quarter of fiscal 14, compared with 778 million rupees last year.

KG denim produces more than 20 million meters denim every year.

The company reported that net profit plunged more than 40% to 33 million 100 thousand rupees in the 2 quarter of fiscal year 14, due to increased input costs, compared with 55 million 800 thousand rupees in the 2 quarter of fiscal 13.

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Similar to P, Aarvee denim and export companies reported a sharp decrease of 56% to 75 million rupees in the 2 quarter of September, which ended in 2013, compared with 1 billion 728 million rupees in the same period last year.

The company said the company's bottom line was hit hard by the cost of investment and the pressure of sales.

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< p > Raymond Co., Ltd., a joint venture with Belgium UCO NV, produces denim. The company said its profit and loss before tax profit and depreciation (EBITDA) decreased by 20% to 230 million rupees, compared with 280 million rupees last year, resulting in high input costs.

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< p > related links: < /p >

< p > the India government has opened up new markets for textile exports in Japan, Australia, Israel, Latin America, Malaysia, Africa, Southeast Asia and the Middle East.

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< p > textile export promotion center and their member units visit various countries to explore the possibility of increasing exports.

According to each visit / Research Report, the list of countries that focus on the country / market in the foreign trade policy is updated in time after the government's consideration.

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According to the new trade policy, in the past three years, in order to improve the export of textile sector, the government of India announced a series of measures, including the textile trade exhibition held in the above countries according to the market access initiative and the financial policy of the market development assistance scheme.

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< p > the measures taken by the India government to increase the share of India's textile exports are: < /p >

< p > 1, increasing interest rate allowance of 2% for garments, clothing, handicrafts, handloom products and carpets; < /p >

< p > 2, according to the market focus plan and special focus market plan to increase the new market; < /p >

< p > 3, add new products according to the focus product plan; < /p >

(P > 4), the beneficiaries of the zero duty tariff export promotion plan and the reform fund plan are entitled to zero tariff export promotion plan for capital goods; < /p >

< p > 5, increase export incentive plan.

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< p > this information is given by the India textile minister KS Rao in the people's court today.

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