TIRUPPUR: The price of cotton yarn for knitwear production has come down by Rs 10 per kg on Monday. Ahead of New Year and Christmas, orders have started coming in and knitwear exporters said that this is positive for domestic production and exports. Exporters also believe that this surge will help in achieving the export target.
On Monday, spinning mills reduced the price of cotton yarn used in knitwear production by Rs 10 per kg for all counts. For example, 20s kh (18.5 count) yarn’s price has been reduced from Rs 220 to Rs 210 per kg. 40s kh (38.5 count) price has been reduced from Rs 248 to Rs 238. The decrease in yarn prices has been taken positively by Tiruppur knitwear manufacturers.
KM Subramanian, president of Tiruppur Exporter’s Association, said, “The price of cotton yarn used in knitwear production has come down by Rs 10 per kg. This will help in the growth of domestic production and exports as the price of cotton has come down to Rs 56,000 (per candy). This will help us to achieve our export target of Rs 40,000 crore this year.”
MP Muthurathinam, president of Tiruppur Exporters and Manufacturers Association, said, “New Year and Christmas orders have started to come in now. Additionally, we are getting order inquiries from Bangladesh as well, but they have been reluctant due to our high prices. Now that the prices have dwindled, exporters can capture most of those orders.”
“We thought domestic sales for Deepavali would be high and a month before Deepavali, orders from other states were coming in good numbers. But after this, number of orders decreased and domestic sales was not up to expectations. So we hope Christmas and New Year export orders will improve the situation and this reduction in price of yarn will aid this. The price of yarn has remained steady throughout this year without any increase,” he added.
Sources said that in January this year, the price of yarn decreased by Rs 20 per kg. After that, it again dropped by Rs 20 per kg in June. Now the price has been decreased by Rs 10 again this month.