Rs 40/kg drop in yarn price gives relief to textile sector

This year alone, the yarn prices went up by Rs 110 per kg. Yarn prices escalated by Rs 30 in January, Rs 10 in February, Rs 30 in April and Rs 40 in May. Such a sharp rise forced the textile units to resort to marathon protests in Tirupur demanding the intervention of state and central governments to bring down their prices.
Bales of yarn kept at a textile unit (File photo)
Bales of yarn kept at a textile unit (File photo)

COIMBATORE: Yarn prices dropped by Rs 40 per kg after a long while giving the much-needed relief to the textile sector in Tirupur.

Yarn prices, which was on an upward spiral for more than a year, has come down for the first time. However, industrialists hope for further reduction in prices for the ailing sector to stabilise.

This year alone, the yarn prices went up by Rs 110 per kg. Yarn prices escalated by Rs 30 in January, Rs 10 in February, Rs 30 in April and Rs 40 in May. Such a sharp rise forced the textile units to resort to marathon protests in Tirupur demanding the intervention of state and central governments to bring down their prices.

Raja M Shanmugam, president, Tirupur Exporters Association (TEA), said that yarn prices, which were rising over the last 18 months to cripple the textile sector, have come down.

“The textile sector expects further drop in prices. As the situation is turning conducive, the textile exporters look ahead for orders to pick up,” he said.

MP Muthurathinam, president of Tirupur Exporters and Manufacturers Association said that use of cotton in textile production began to decline following sharp increase in yarn prices.

“Only if yarn prices come down further, the shift towards polyester can be stopped and help the textile industry to survive. Yarn prices almost doubled from Rs 220 to more than Rs 400. Hence, more price drops should be made for the Tirupur textile units to grab export orders,” he said.

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