Powerloom Development and Export Promotion Council (PDEXCIL) has demanded a fair mechanism for safeguarding that yarn prices steady and stay constant over a period of time to guarantee that the micro and small/medium entrepreneurs in the powerloom industry don’t suffer due to frequent fluctuation in the yarn prices.
The production cost of fabric is mainly dependent on the yarn prices, which is the main raw material for conversion to fabrics.
However, due to sluggish demand of fabrics in domestic market as well as decline in exports, manufacturers are unable to absorb the burden of such price rise. This has reduced their profit margin and they find it difficult even to achieve a breakeven.