Terry towel makers use recycled PET bottles, hosiery waste to cut costs

Following GSP withdrawal in June, manufactures face increased competition from Pakistan and Bangladesh, which continue to enjoy preferential treatment

To compete in the export market, terry towel makers in India have started using blended yarn made from recycled PET bottles and hosiery waste.

They face increased competition from Pakistan, where the currency exchange value has gone down, and from Bangladesh, where there is help from better state policies. And, from June, the American government withdrew the concession for India under its Generalized System of Preference (GSP), making Indian terry towel export to the US costlier by 10 per cent. Pakistan and Bangladesh continue to enjoy the GSP benefit.

“Reducing input cost was the only way to remain