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Comparison of Textile Production Costs in Some Producing Countries

BULETIN TEKSTIL.COM/Jakarta – Low production costs provide a distinct advantage for textile producing countries. Free and open market forces producers to sell their products at a certain price and standard.

When the market has set a certain price, for instance, then assuming that the quality of the goods entering the market all meet the applicable standards, the producers who are able to produce textiles at the lowest cost will be free to set a selling price below that of their competitors.

Consumers will choose to buy their products. Thus, in terms of quantity, they can sell in large quantities. Or if they sell at the standard price in the market, then the level of profit received will be greater than that of their competitors.

The International Textile Manufacturing Federation (ITMF) has conducted research on the total production cost of textiles in several textile producing and exporting countries in 2021.

The countries that have been studied include: Bangladesh, Brazil, Central America (El Salvador, Honduras and Guatemala), China, Egypt, India, Indonesia, Italy, South Korea, Mexico, Pakistan, Turkey and the United States.

In this research, ITMF cooperates with large textile machine manufacturing companies such as: Beninger Switzerland, Mayer & Cie Germany, Oerlikon Barmag Germany, Picanol Belgium and Rieter Switzerland.

The data collection was carried out with the full assistance of textile producer associations from countries i.e. Brazil, Bangladesh, Mexico, China, India, United States, Pakistan and Egypt.


Production costs use US$ units and the currency of each country is converted to US$. At the time of research, the currency values apply as follows:


The types of textiles studied consisted of: Ring Spinning, Rotor Spinning, Texturizing, Weaving, Knitting and Finishing of woven fabrics and Finishing of knitted fabrics.

The types of production included in the study were: Ring cotton combed Ne30 yarn, OE Ne20 cotton yarn, Fillament texture 75 Den, Ring woven fabric, OE yarn woven fabric and knit fabric.

  1. Spinning

The yarn produced is Ne30 Ring combed cotton yarn with 1-1/8” staple length cotton fiber as raw material and OE Ne20 carded yarn with 1-1/16” staple length cotton fiber as raw material.

  1. Texturizing

Total cost to produce 100% Polyester POY 75 Denier

  1. Weaving

In the weaving process, woven fabrics are produced with a cloth thickness of 27.6/27.6 per cm with Ring Ne30 thread material, 24.0/24.0 cloth thickness per cm with OE Ne30 yarn as raw material, and 75 Denier filament texture yarn with cloth thickness. 38.0/31.0 per cm.

The width of the 168 cm gray cloth is for fabrics made from spun yarn and the width of the 177 gray cloth is for textured yarns.

  1. Knitting

In the knitting process, the research objects were single jersey fabric for Ring Ne30 yarn with a 192 cm wide gray fabric, 224 cm gray lapique fabric for OE Ne20 yarn, and 190 cm wide gray interlock fabric for textured yarn.

  1. Finishing

The raw materials used in the finishing process are 190 gr/m gray woven fabric, 230 gr/m gray single jersey knit fabric, 358 gr/m gray lapique fabric, and 209 gr/m gray interlock knit fabric.


The calculation of production costs is grouped into:

  1. Waste: calculated from the waste that is wasted during the production process and the results of selling waste.
  2. Worker Wages: calculated from wages paid to production, skilled or unskilled and maintenance workers. All expenses for employee welfare are included here.
  3. Energy Costs: includes energy consumption for machinery, lighting, use of steam and for heating.
  4. Auxiliary Material Cost: consists of the cost of machine parts, engine oil, and engine cleaning materials.
  5. Depreciation: depreciation of machinery, auxiliary equipment and buildings.
  6. Cost of Capital: payment of interest on capital used.
  7. Cost of Raw Materials: cost of cotton fiber and polyester fiber, price of yarn and gray cloth.


In this 24th edition of the Textile Bulletin, we present a comparison of the total cost of TPT production from several countries. We will select 7 countries out of 14 countries studied by the ITMF, the selection of the superior countries is based on the lowest total production costs of the population studied.

Research shows the following results:

  1. Spinning
a. Production of Cotton Combed Ne30 Spun Yarn

Table 2. Production Cost of Cotton Comber Spun Yarn Ne30

India is in first place as a country producing spun cotton combed Ne30 with the lowest total cost. Entering the top 7, the lowest position is occupied by Vietnam. Indonesia is not included in the top 7. Our country will enter the next sequence which will be published in part two of this article.

India excels in the raw material cost component with a cost of US$ 1.77 far below Vietnam which is in last place with a raw material cost of US$ 2.25. This is because India is a country that produces cotton fiber in large quantities, so the price of cotton fiber is cheap in that country.

India’s other advantage is the wage cost component, with a figure of US$0.04 far below Turkey and Mexico with wage costs of US$0.12 and US$0.11 respectively.

The lowest cost components of the 7 countries above are:

Table 3: Lowest cost components for the production of Cotton Combed Ne30 yarn

From table 3, Pakistan has the lowest waste costs and the lowest wage costs are held by Bangladesh. Vietnam excels in the components of Energy costs and Capital Interest costs. Meanwhile, the lowest cost of supporting materials and raw materials is the advantage of India.

b. Production of OE Ne20 spun yarn

Table 4: Cost of Production of Cotton Spun Yarn OE Ne20

India is the country with the lowest total cost of production for OE Ne20 cotton yarn while the country with the highest cost of production is Bangladesh.

Indonesia is also not included in the top 7. India’s advantage is supported by the availability of cotton fiber raw materials at low prices, India is able to produce OE Ne20 cotton yarn with a total cost of US$2.22/kg, while the country with the lowest order, namely Bangladesh, has a total production cost of US$2.63/kg.

If we analyze the components of production costs to see the advantages of each country, we can see the details of the lowest costs as follows:

Table 5: Lowest cost components for the production of Cotton OE Ne20 yarn

The United States is the leading country in terms of cost components: Waste, Energy, Supporting Materials and Capital Interest.

India excels in cost components: Wages, Auxiliary Material costs and Raw Material costs.

Cost component The lowest wages are held by the countries: India, Pakistan and Bangladesh.

  1. Texture Yarn

The textured yarn studied was 75 Denier POY polyester filament yarn. The results of the research on the lowest total production costs of each country are listed in the table below

Table 6: Cost of Production of POY 75 Denier Filament Yarn

China and India occupy positions 1 and 2 in the lowest total production costs for POY 75 Denier polyester filament texture yarn products of US$1.46/kg, while the highest costs in the top 7 are Egypt at US$1.63/kg. Indonesia ranks third with a total production cost of US$1.52/kg.

The cost component analysis shows the advantages of low cost countries as follows:

Table 7: Lowest cost components for the production of 75 Denier POY Texture Filament yarn

The calculation of the lowest waste costs is held by China, India, Bangladesh and Pakistan.

The lowest wages are held by India and Egypt.

Lowest Energy Cost in Egypt.

The cost of auxiliary materials is evenly distributed in all countries

The lowest capital interest costs are in Vietnam.

The lowest Raw Material Costs are held by China and India.

  1. Weaving
a. Total Production Cost of Weaving made from Ring combed Ne3 yarn

Table 8: Weaving Production Costs made from Ring Combed Ne30 yarn

India ranks lowest in total production costs for the production of woven fabrics made from Ring Cotton combed Ne30 yarn, while Mexico has the highest costs. Indonesia is in 6th position out of 7 countries studied.

The ranking of the lowest costs in the components of production costs from these countries is as follows:

Table 9: Lowest Cost Components of Weaving Production made from Ring combed Ne30 yarn.

The lowest waste costs in India and Pakistan.

Cost The lowest wages are in the countries: India, Pakistan and Bangladesh.

Vietnam holds the lowest costs for the Energy and Interest capital components

The lowest auxiliary material costs in Bangladesh and Indonesia.

India has the lowest raw material costs.

b. Total Production Cost of Weaving made from OE Ne20 yarn

Table 10: Production Cost of Weaving with OE Ne20 Yarn (US$/m)

The country with the advantage in the lowest total production costs for the production process of weaving with Cotton OE Ne20 yarn raw material is India.

Meanwhile, countries with the highest total production costs are Central American countries. Indonesia is in the 6th position out of 7 countries studied.

The lowest costs of production cost components in TPT producing countries are shown in table 11 as follows:

Table 11: Lowest Cost Components of Weaving Production made from Cotton OE Ne20 yarn.

From table 11, countries with the lowest costs of each production cost component are:

India and Pakistan are superior in terms of waste costs

Wages are held by the State of Bangladesh as superior

Energy Costs: The Country of Vietnam

Auxiliary Material Cost: Country Bangladesh

Capital Interest Cost: Country of Vietnam

Cost of Raw Materials: Country of India

c. Total Production Cost of Weaving made from POY 75 Denier Poyester Texturized yarn

Table 12: Weaving Production Costs made from POY 75 Denier Polyester Texture yarn.

Vietnam was crowned as the leading country, the highest cost was won by China. Indonesia is in fifth position out of the seven countries studied.

Details of the lowest production costs that the countries studied are shown in table 13 below:

Table 13: The Lowest Cost Components of Woven Production made from POY 75 Denier Polyester Texture yarn.

From table 13, the lowest production cost components are in the following countries:

Waste Cost: All countries are equal in terms of the waste cost component

Wage Cost: Bangladesh is leading in terms of wage cost component

Energy Costs: Vietnam turns out to be ahead in terms of energy cost components

Cost of Auxiliary Materials: No country excels in the cost of auxiliary materials, they are all the same

Capital Interest Cost: Vietnam excels in the capital interest cost component

Raw Material Costs: almost all countries are the same in terms of components of raw material costs except for Turkey which is a bit high.


What is interesting from the comparison of the total costs of production by the ITMF in this textile producing and exporting country are:

  1. India is ahead of almost all countries as the producer with the lowest cost of production, i.e. demonstrating ability in the lowest total cost of production for:
  • Ring Cotton Combed Ne30 Yarn Products
  • OE Ne20 Cotton Yarn Products
  • POY 75 Denier Polyester Textile Yarn
  • Woven fabric made from Ring Cotton Combed Ne30 yarn
  • Woven fabric made from Cotton OE Ne20 yarn
  1. Vietnam is the only country outside of India that excels as the producer with the lowest cost in woven fabric products made from POY 75 Denier Polyester textured yarn.
  2. China enters as the lowest cost country for the production of POY 75 Denier Polyester Textile Yarn along with India
  3. In terms of production cost components, it can be seen that the following countries excel as producers with the lowest costs, namely:
  • Vietnam excels as the country with the lowest costs for the cost components: Energy and Dude Capital.
  • India is lowest for costs: Raw Materials and Wages
  • Pakistan and Bangladesh excel in terms of low wages.
  1. Indonesia’s position in the top 7 countries studied is as follows:
  • Not included in the top 7 for Cotton Combed Ne30 and OE Ne20 yarn products
  • 3rd place in the production of POY 75 Denier Polyester Texture Yarn
  • On the order of 5th and 6th of the 7 countries studied for other products

To promote Indonesia as a leading country, all textile industry stakeholders must examine which cost components can still be reduced.

Why are our competing countries able to excel and can we work hand in hand compete with them? Of course all of that must be done now, not tomorrow or later, before we fall too far behind.

(Red B-Teks/Indra I)

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