TIRUPPUR : High yarn price, triggered by rise in cotton rate, has forced grey fabric manufacturers to halt production by up to 50% from Friday. In the first week of February 2024, the price was Rs 58,000-Rs 59,000 per candy, whereas on March 8, it jumped to Rs 62,000.
Speaking to TNIE, Tamil Nadu Textile Manufacturers Association coordinator K Sakthivel said, “Textile and power looms are the major industries offering jobs in Palladam. We got fabrics from the power loom weaving units and we have found that the losses were rising in the past two years. We expected orders on the occasion of Deepavali but we were disappointed. In the last few weeks, the price of cotton increased increased as a result the cost of yarn jumping from Rs 15 to Rs 25 per kg. While we are already suffering from power tariffs, the current price of cotton and cotton yarn has destabilised our industries. To increase our chances of survival, we have decided to halt production by up to 50% from today. More than 300 large textile manufacturers have halted production.”
Speaking to TNIE, South India Hosiery Manufacturers Association (SIHMA) president A C Eswaran said, “In normal times the price of cotton bale would be in the range of Rs 55,000 -Rs 57,000 per candy. During the cotton season, the production of cotton bales would be several lakh tonnes (325 lakh bales). The demand for the ready made garment industry would be around 300 lakh bales. During the current season, the cotton market received 215 lakh bales. Around 125 bales moved to cotton mills and the knitwear industry; the rest of the 90 lakh bales were acquired by the Cotton Corporation of India (CCI) and cotton traders. We see the union government intervening and regulating to stabilise the price.”
An official from the textile department said, “We have received some representations from trade bodies and some have already written to the union ministry in this regard. However, market conditions are volatile due to the less arrival of cotton in the cotton market. But it could stabilise in the future.”