Having had to bear a heavy blow from the run away cotton yarn prices, the apparel industry has decided to go on one-day strike tomorrow under the aegis of the apex industry body, Apparel Export Promotion Council (AEPC).
Under the current scenario, the apparel units are finding it difficult and unviable to accept new orders and the entire apparel industry has therefore decided shut operations for a day, AEPC said in a statement issued yesterday.
During the 2009-10 fiscal, the council had pegged the value of apparel exports at $10.64 billion down 2.6 per cent.
According to the AEPC this was due mainly to a dip in the demand from the US and Europe, the country's main export markets and also a sharp increase in fabric prices which made the apparels uncompetitive in the exports market.
According to A Shaktivel, Tiripur Exporters Association (Tea) president and a prominent member of AEPC units across major producing centres including Tirupur, Karur, Kovilpatti, Surat would remain shut to protest the increasing prices of cotton yarn. They would also demand a ban on cotton yarn exports. Shaktivel was speaking to the Financial Express newspaper.
He added, in Tirupur alone, the one day strike is expected to cause a loss of Rs48 crore with the all India loss expected around Rs 175 crore to Rs 200 crore.
He told The Financial Express that the one day strike announced by the entire industry was the first step to draw the attention of the government to the current situation prevailing in the industry and to impress upon them that immediate action needs to be taken.