The raw material crisis experienced by Turkish ready-made clothing companies, which were flooded with orders by world fashion giants after the pandemic, began to threaten both production and exports. Heads of 5 ready-to-wear and apparel exporters’ associations and 13 sectoral associations, which have achieved $20 billion in exports, called for “monitoring cotton and cotton yarn exports, removing additional taxes on yarn imports” at a press conference. Speaking on behalf of the unions and associations participating in the meeting, IHKIB President Mustafa Gultepe stated that Turkey’s cotton yarn exports increased by 68.4% in the January-October period of this year compared to 2020, “When we look at the 10-month averages, we see that fiber is exported for $2, yarn for $4, and fabric for $6-7. However, if we can process those products and turn them into ready-made clothing and apparel, we can sell them for $16-17, and we can earn much more foreign currency to our country by increasing our value-added exports.”
AFFECTS INFLATION
Reminding that there was a significant shift in orders from China and Asian countries to Turkey this year, Gultepe underlined that they could not use this advantage as they wished due to problems in accessing raw materials. President Gultepe, calling for the exorbitant price problem to be resolved as soon as possible, said, “If this continues, the consumer will buy the product that he bought for ₺100 for ₺170 in April-May next year. Prices will increase by 60-70% and ready-made clothing will make the biggest negative contribution to inflation.”
DON’T LOSE THE CUSTOMER
Pointing out that the increase in raw material prices is pushing their competitive power in the international arena, Gultepe said, “Customers started to refuse to accept price differences. In order not to cause order cancellations and not to miss our customers, a solution to this problem is urgently needed. If the customer leaves, we cannot return them.” Saying that the whole world is under great pressure of inflation, United Brands Association (BMD) President Sinan Oncel said, “In addition to cost increases, there has also been an ‘expectation inflation’ in our country. For example, the manufacturer does not want to take orders when you do not pay in advance. Even if the payment is in dollars or euros, we have to pay the price of the raw material in advance, since there is an increase in the prices on the basis of foreign currency. This is not a sustainable picture that eliminates market credit.”
Source: Sabah / Translated by Irem Yildiz
