TIRUPPUR: In the wake of union government removing duty on cotton import, several spinning mills in Tiruppur have started from place orders in the USA, and Australia. Some mills, however, prefer to see how the market reacts and how much the prices come down.
MP Muthurathinam, president of Tiruppur Exporters and Manufacturer Association, said, “ The price of cotton yarn would come down by Rs 10-20 a kilogram from Rs 400. This will definitely encourage garment units to sign deals with foreign buyers.”
Speaking to TNIE, the managing director of Ess Tee Exports N Thirukumaran, said, “Duty cut is one of the biggest positive news for garment units and exporters. But many garment companies are holding weeks worth of stock. The price slab for the cotton will be different, after the arrival of imported cotton. Most exporters will adopt a wait and watch policy for the next few days. Most importantly, the Centre’s decision will cool yarn price and could bring stability in the market.”
Velmurugan Shanmugan, MD of Jayalakshmi Textiles, said,“The 11% import duty affected all spinning mills and reduced India’s competitiveness with other Asian countries. But, the new decision could swing the tide in our favour,”
Tamil Nadu Spinning Mills Association (TNSMA) - Special Adviser Dr K Venkatachalam said, “Many spinning mills have started to plan for imports from USA, Australia, Egypt, West Africa. The new arrivals could stabilize the price at around Rs 88,000 in a few weeks. ”