Call from TİM Chairman Gülle to Address Raw Material Problem

Head of TİM Calls for Action on Raw Materials Issue TİM President Gülle made an appeal regarding the raw materials problem in the apparel sector: "Let us increase cotton production in agriculture. There will now be supply difficulties for cotton commodities worldwide as well. For this reason, we need to produce commodities that will suffice for ourselves." "(The demand for removal of additional tariffs on yarn and fabric imports) We cannot turn a deaf ear to the demands of these sectors; we are listening to them as well. We will present this to our Trade Minister. We are in favor of doing what is best for our sectors." İsmail Gülle, President of the Turkish Exporters Assembly (TİM), stated that cotton production areas in Turkey need to be expanded due to raw materials shortages in the ready-made apparel sector, saying "We need to produce commodities that will suffice for ourselves." Gülle said that the ready-made apparel sector is facing raw materials problems due to rising cotton prices worldwide. Drawing attention to commodity price increases during the pandemic period, Gülle stated that Turkey needs to stand by its own commodities. Emphasizing that commodities are now the greatest asset, Gülle said: "We need to continue our import-substitution investments and produce the raw materials and sources of all imported products. Our recommendation from this point to the Ministry of Agriculture and Forestry is as follows: expand and increase agricultural areas and let us increase cotton production in agriculture. There will now be supply difficulties for cotton commodities worldwide as well. For this reason, we need to produce commodities that will suffice for ourselves." Gülle also addressed the demand of the textile and apparel sector for the removal of additional tariffs applied to yarn and fabric imports, making the following assessment: "With these types of imports directed at exports, there is no problem with the use of domestic processing regime certificates; they are being used in large quantities. We cannot turn a deaf ear to the demands of these sectors; we are listening to them as well. We will present this to our Trade Minister. We are in favor of doing what is best for our sectors." Emphasizing that domestic market balances need to be maintained across all sectors while exports are running at such high volumes, Gülle stated: "When the balance of domestic demand is disrupted, it then causes price increases and other issues. We need to both protect the domestic market and increase exports."

Sector representatives had raised the issue

Mustafa Gültepe, President of the Istanbul Apparel and Confectionery Exporters Association (İHKİB), noted that cotton prices increased by 57% worldwide and 86.6% in Turkey over the past year, saying: "Due to the problems we face in raw materials procurement, our delivery times are extending and we sometimes have to reject orders." Nazım Kanpolat, President of the Turkish Underwear Manufacturers Association (TİGSAD), pointed to the difficulties they face due to cotton shortage and called for the removal, even temporarily, of additional tariffs of 5% to 8% applied to yarn imports and 20% to fabric imports. Kanpolat stated that the current situation increases production costs and is the greatest obstacle to high value-added exports.

Production increase expected in Turkey

According to the Cotton Report prepared by the Ministry of Agriculture and Forestry, it is projected that in the 2021/2022 production season worldwide, 26.2 million tons of lint cotton will be produced on 32.6 million hectares, and consumption will be 26.9 million tons. According to TÜİK's second estimate, Turkey's raw cotton production, which was 1.77 million tons in 2020, is expected to reach 2.25 million tons this year with an increase of 26.9%. While Turkey imported 1.1 million tons of cotton in 2020, it achieved USD 26.8 billion in textile and apparel exports in the same period.

ANKARA (AA) - DENİZ ÇİÇEK