Textile tweaks may not cut it for manufacturers and consumers

Sarees, suits and readymade garments made of Man-Made Fiber (MMF) in addition to premium cotton apparel are set to get a shade cheaper with nominal price reductions. With incentives rolled out for textile manufacturing, some relief is expected from fabric and garment makers in textile and apparel pricing, though the impact is unlikely to be immediate.

“The announcements will enable improvements in technology and quality for domestic and export markets. Efficiently managed costs will in turn help manufacturers to offer better pricing to customers for apparel and textile products,” said Nikhil Madrasi, president of the Southern Gujarat Chamber of Commerce and Industry.




Meanwhile, continuation of duty-exemption on Extra Long Staple Cotton, will keep prices of premium cotton apparel affordable. Logistics efficiency is also expected to play a role in easing price pressures, though in the long term. The proposed Dedicated Freight Corridor linking Dankuni in West Bengal to Surat will help lower transportation costs and improve market access for the MMF hub, benefits that could gradually reflect in consumer pricing.

Key announcements such as Samarth 2.0 scheme to modernise the textile skilling ecosystem; setting up of Mega Textile Parks in mission mode and the National Fibre Scheme will help improve manufacturing efficiency. The Textile Expansion and Employment Scheme, and Tex-Eco initiative will help absorb cost pressures.

“The package will help modernise the sector and improve efficiency across the value chain. Enhanced scale and productivity could allow consumers to access better quality textiles at stable prices over time,” said Rahul Mehta, chief mentor, Clothing Manufacturers’ Association of India.

Support for smaller players and weavers will also indirectly benefit consumers.