TIRUPPUR: The price of cotton yarn has come down to Rs 360 per kg from Rs 400, across all categories, due to poor demand.
Speaking to TNIE, Tiruppur Exporters and Manufacturer Association president MP Muthurathinam said, “The primary reason for the fall in price is that small and medium-sized garment units have reduced consumption over the last several months. This resulted in stockpiling up with mills, Many mills are unable to sell more than 50% of yarn. To clear stock, they have reduced the price.”
E Devaraj, the proprietor of Sixer Garment, said, “Garment units could not afford the high price and suspended procurement. When demand is low, it is natural for prices to come down. More importantly, there are no orders from North and Western India, so garment units are working with minimal workforce and time-based schedules. Despite the fall, many units still feel the price is a bit high.”
While garment units claim poor demand, mill owners complain there is a supply glut of cotton candy in the market. South India Spinners Association (SISPA) general secretary P Jagathish said, “The price of cotton candy was above Rs 1 lakh three months ago, but dropped to Rs 75,000 a few days back. This is mainly due to fear of fresh cotton arrival in the market. Less offtake from garment units is also a reason for the price fall.”
An official from the Department of Textile, Tamil Nadu, said, “We received information that cotton production in northern India is likely to increase in the coming season. The arrival of fresh harvest is expected to gather pace this month, Procurement from garment units is low and this has caused yarn prices to fall.”