Massive job losses are in the offing in the textile sector, said Mr Rakesh Vaid, Chairman, Apparel Export Promotion Council (AEPC). He said high prices of cotton have pushed up the cost of the fabric and the end product and now in a situation we are forced to reject repeat orders as we can't justify the high prices to our foreign buyers. In the coming weeks production would have to go down and it would result in unprecedented job cuts in the industry.

Right now the demand is growing in the international market, but we are losing out on the opportunity because fabric prices are rising at an unprecedented level, this would eventually hamper job creation.

AEPC voiced concerns that export of cotton is actually aiding other countries to price their fabrics and garments more competitively. “Exporting finished product would provide a greater price realisation and help us capture a greater share of the international garment market. In order to give a boost to the domestic manufacturers, AEPC has urged the government to curtail exports of cotton by increasing the export duty on cotton.