View that profit earned through the abolition of the global quota system may last very short, seems to be making rounds among industry circles. Lack of quality in fabrics manufactured by local power-looms is affecting garments quality and perpetually raising the manufacturing costs.
A leading clothing company? senior official informed that their company is pressurized to import over 50 percent of the total cloth required, due to paucity of quality fabric in India.
Mumbai-based Millowners?Association Secretary General, V Y Tamhane opined that there are several complaints from garments makers and exporters about not getting quality yarns from the decentralized mills.
Export-Imports Bank of India (Exim) data shows that only 4 percent of the total fabric output is produced in the organized sector, while the rest comes from un-organized power-looms.
Thus, local firms are forced look at the export markets of Taiwan, Hong Kong and China for processing the Indian yarn into high quality fabric and exporting it back to India, that eventually raises the cost of production, added the official.
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