19 Nov 2010

Textile firms in a knot

Malaysia Textile News, Textile News Comments Off

KUALA LUMPUR: The Govern-ment has been urged to abolish import duty for garments and fabrics to ensure fair competition for all players.

Federation of Textiles General Goods and Garment Merchants Associations of Malaysia President Yew Chin Liong said this was crucial because garments and woven products would probably cost more because of an increase in cotton and yarn prices.

“The price of cotton from China has more than doubled, rising from RM9,421.15 per tonne in September to RM19,784.42 per tonne in November,” said Yew at a press conference yesterday.

He added that in October last year the price of combed yarn was RM10 per kg but it had increased by 118% to RM21.80 per kg in the same month this year.

Yew said that many garment manufacturers were opting for new materials such as polyester and spandex to reduce their dependence on cotton and to lower costs but predicted the price of polyester was likely to increase too.

He urged members to consider raising their prices if necessary to avoid any possible loss.

The federation called upon cotton-producing countries like China, India, United States, Pakistan and Brazil to release their cotton stockpile to ease the tight supply in the market.

Yew said that it was difficult to determine a benchmark price for producers and purchasers to negotiate or accept orders as the price of materials was increasing daily.

At the recent Guangzhou Autumn Trade Fair, many local importers were hesitant about placing firm orders due to the increasing price, said Yew.

“Among the factors that caused the price hike of cotton was natural disasters and extreme weather,’’ he said.

Source: The Star Online, Nation News (19 November 2010)

http://thestar.com.my/news/story.asp?file=/2010/11/19/nation/7457600&sec=nation

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