TIRUPPUR: Yarn prices, which have been continuously rising since the beginning of the current year, price dropped by Rs 10 per kg on Monday. KM Subramanian, president of the Tiruppur Exporters' Association (TEA), told TNIE that this development is a result of the centre’s temporary removal of the import duty on cotton, adding that it is a positive sign.
Subramanian said, "Due to the continuous rise in cotton prices in both international and domestic markets, the price of cotton yarn also continued to rise, leading to a crisis for the Tiruppur knitwear industry. Against this backdrop, we, on behalf of the industry, submitted requests to the centre to temporarily remove the import duty on cotton. Accepting the demand, the centre has announced an exemption from customs duty on cotton imports from June to October. Due to this impact, cotton prices have decreased."
"On Monday, domestically, the price per candy of cotton (356 kg) dropped to Rs 63,000. Prior to the centre’s announcement, it was Rs 69,000. As a result, the price of cotton yarn also dropped by Rs 10 per kg for all varieties on Monday. This will reduce input costs across the textile and apparel sector," he added.
Earlier, the continuous rise in yarn price had caused concern among exporters and domestic manufacturers. From January to May, yarn prices had risen by Rs 65 to Rs 70 per kg. Earlier, cotton was traded at around Rs 54,000 per candy in February.
R Damodharan, secretary of the South India Hosiery Manufacturers Association (SIHMA), said, "This price reduction has been announced until June 15. Therefore, we expect the price of yarn to decrease even after that. Because cotton prices are likely to fall further. This is a temporary relief for the knitwear sector."