The steep hike of over 68 per cent in the prices of cotton yarn has left India's hosiery units in deep trouble leading to possible closure and retrenchement in many non-viable units.
This view was expressed here today by Mr P R Agarwala, chairman of the Rs 530 crore Rupa and Company Limited, India's leading innerwear and casualwear manufacturer, while talking to media.
Steep hike in prices of raw materials, particularly of cotton and non cotton yarn, had adversely affected the industry, causing serious concern at all levels, Mr Agarwala said and sought immediate government intervention to help bail out the garment sector from the crisis.
''We, on behalf of the cotton industry and the export associations, have requested the government and sought a meeting with the Union Textile Minister to find an amicable solution to the present crisis, but nothing has happened so far,'' Mr Agarwala said and regretted the alleged unconcerned attitudes of the Ministry.
Mr Agarwala also agreed with the view expressed in some sections of the industry that if no immediate solutions were found by the government to reduce the high cost of raw materials, there could be largescale retenchment of unskilled labourers in many units as their business would certainly be non-viable under the present circumstances.
He, however, ruled out any such possibility in Rupa in foreseeable future.
''In view of the present crisis we have changed our business strategy accordingly and emphasised on export and sale of premium products in every segment,'' he said and hoped that soon the situation would turn for the better following a new government initiative.
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