In a further blow to Tirupur knitwear sector, which is yet to recover from the impact of COVID-19 pandemic, the cotton yarn prices have increased by Rs 30 per kg at one go on Friday.
In the last 18 months alone, the yarn prices rose by Rs 200 per kg. The garment manufacturers feared that if this trend continues, then India may lose its competitiveness. “We may even be forced to import garments from Bangladesh and China,” said Tirupur Exporters and Manufacturers’ Association (TEAMA) president MP Muthurathinam.
Yarn of 30s count has increased from 370 per kg to Rs 400, while the 40s count yarn rose from 400 to 430. Similarly, all variants of yarn have increased by Rs 30 per kg.
Such continuous hike in the price has severely affected the readymade garment sector. Also, the cotton prices have increased from 45,000 per candy in February last to 90,000 per candy now.
Attributing the hike due to mindless hoarding, industrialists claimed that small scale textile units are forced to close, if the trend persists. Therefore, Tirupur garment exporters have planned to meet Union Minister for Textiles Piyush Goyal on April 4 to address their concerns.