TIRUPPUR: Tiruppur knitwear exporters have said that the cost of knitwear production has increased by up to 15% due to the ongoing increase in cotton yarn prices this year. However, they express concern that since foreign buyers are unwilling to accept this price hike, the exporters themselves are forced to bear the cost. They have also urged the central government to intervene immediately in this issue.
On Tuesday too, the prices of cotton yarn varieties rose by up to Rs 5 per kg. Some spinning mills raised prices by up to Rs 7. Since the beginning of this year, the prices have risen by more than Rs 80 per kg.
Speaking to TNIE, K M Subramanian, president of Tiruppur Exporters' Association, said, "The continuing rise in cotton yarn prices is a major concern for the Tiruppur knitwear sector. The rise in cotton prices is the main reason behind this. At the beginning of the current year, the price of one candy (356kg) of cotton was Rs 58,000. Its price has now risen to Rs 74,000. The central government has temporarily removed import duties on cotton from June to October to stabilise cotton prices. However, prices have not come under control. This has led to an increase in the price of cotton yarn."
"Since the beginning of this year, the prices have risen by more than Rs 60 per kg. The price increased on Tuesday as well. As a result, the production cost of a single knitwear has increased by 15%. Foreign buyers are unwilling to accept this price hike; therefore, exporters themselves are forced to bear the cost. To avoid such things, we urge CCI and spinning mills to determine cotton and yarn prices once a month. We are going to meet union ministers regarding this soon," he added.
Plan to meet union mins
S Shanmugasundaram, president of the South India Hosiery Manufacturers Association (SIHMA), said, "The prices of some cotton yarn varieties we use for hosiery production have risen by up to Rs 110 per kg this year. To cope with this, we even announced a 10% price hike recently. However, the buyers refuse to accept it. The central government must intervene immediately in this matter. Otherwise, industries in Tiruppur will be affected. Workers will also be affected."
"The central government should regulate yarn exports. In the current scenario, China is importing large quantities of yarn from India. The government must restrict yarn exports to meet domestic demand," he added.
M P Muthurathinam, president of the Tiruppur Exporters and Manufacturers Association, has said that this trend is likely to affect the knitwear sector and lead to job losses for workers.
S Saravanan, core committee member of Tiruppur Yarn Manufacturers Association, said, "Cotton prices are rising sharply in both domestic and international markets. The price in the international market has risen from 70 cents in June to 93 cents now. In particular, due to El Niño, there is an expectation that domestic cotton arrivals will be delayed by about 40 days, starting in November, after Deepavali, instead of October. Stockists are taking advantage of this. This price hike trend is likely to continue for two months."