Garment makers startled by yarn price rise

With around 5.63 lakh power looms, the textile industry is next only to agriculture, in providing direct and indirect employment in the State.

Published: 02nd November 2021 12:54 PM  |   Last Updated: 02nd November 2021 12:54 PM   |  A+A-

Express News Service

TIRUPPUR / NAMAKKAL: Garment makers in Tiruppur, exporters in particular, which houses more than 3,000 units employing around 2 lakh people, voiced concern as price of yarn increased by Rs 50 per kilogram across all categories.

Tiruppur Exporters Association (TEA) joint secretary Senthil Kumar said yarn price had been increasing steadily since 2020. “Every one or two months, mills revise price ranging from Rs 10-25 per kg. Last month, a few mills increased price by Rs  25-40. Today, large mills hiked the price by more than Rs 50 per kg as a result of which cotton yarn crossed Rs 350.”

Tamil Nadu Spinning Mills Association (TNSMA) advisor Dr Venkatachalam justified the price hike stating that mills were battling a host of problems.

“The price of cotton candy (one candy - 355.62 kilogram) has increased from Rs 62,000- 63,000 in early October, to Rs 66,000 in the last week. Further, transportation costs and labour charges have gone up, and mills are facing power shortages and most facilities operate on generators. All these factors could have pushed the yarn price up.”

Meanwhile, weavers said they are unable to complete orders due to a rise in yarn price and shortage of raw materials. Small Textile Owners Association president GK Prabhakaran told TNIE, “The price of combed yarn was Rs 254 in January but has risen multiple folds. This has made it difficult for us to achieve 100 per cent production.” This apart, he said, weavers were struggling to get raw materials, including elastic fabric and polyester, which are procured from China due to the Centre’s ban on import.

Weavers also complained of a lack of government support. K Gunasekaran (52), a weaver, said the weavers of Andhra Pradesh and Telangana got a 40 per cent subsidy for procuring new power looms. Further, pointing out that access to bank loans was tougher, the weaver said it dissuaded entrepreneurs from opting for the textile industry.

Sources said, “The State provides free electricity to handloom and power loom weavers up to 200 units and 750 units respectively bi-monthly. A total of 77,550 handloom and 1,42,227 power loom weavers benefit from the scheme. Besides, 26,996 handloom weavers receive old-age pension. As far as the provision of subsidy is concerned, it is a matter of the government’s policy decision.”

With around 5.63 lakh power looms, the textile industry is next only to agriculture, in providing direct and indirect employment in the State.

India Matters


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