Economy, Business And Markets

Call for Garment Industry Revitalization

Call for Garment Industry Revitalization
Call for Garment Industry Revitalization

The head of Tehran’s Union of Garment Manufacturers and Sellers has called for the garment industry to be revitalized by stopping illicit import of garments.

“Illicit import of garments results in price increase,” Abolghasem Shirazi told ISNA on Tuesday, adding that as there’s no lack of garments, the prices can easily be controlled.

More than 17,000 shops are running under the union’s supervision in Tehran, according to Shirazi, who characterized garment market in Iran as highly competitive.

“Because of the high number of suppliers in the industry, the market is highly competitive in this field,” he stated.

The garment industry can provide manufacturers with high value-added products, Shirazi said, adding that the industry is also capable of creating numerous job opportunities.  However, domestic manufacturers are only able to compete with authorized importers, “not the smugglers,” said the official, who argued that as authorized importers have to pay the conventional tariffs, competition in the market is fairer, and thus they feel that their rights are being preserved through competition.

The local garment industry is faced with a number of obstacles, according to Shirazi, who called for the elimination of redundant costs of production, “so that manufacturers can gain the upper hand against importers.”

Other obstacles facing manufacturers in the field of garment industry included dependence on foreign equipment and raw material for production, Shirazi added.

“We need to resolve the problems facing our textile industry in the first place,” asserted the union head.  As a solution, Shirazi called for new government incentives such as cutting revenue and value-added taxes in a bid to help manufacturers enhance domestic production.