Knitwear exporters in Tiruppur have welcomed the spinning mills’ decision to lower cotton yarn prices across all counts by Rs 10 per kg. For instance, spinning mills in the city have lowered the the price of 20s kh (18.5 count) to Rs 210 per kg from the earlier Rs 220 per kg. Similarly, the price of 40s kh (38.5 count) yarn has been lowered to Rs 238 per kg from the earlier Rs 248 per kg.

Knitwear exporters hailed this move as a boost to both domestic production and exports, especially ahead of the New Year and Christmas season. They have been receiving increasing orders, bringing optimism about meeting export targets.

KM Subramanian, President, Tiruppur Exporters’ Association, states, the reduction in cotton yarn prices will help boost domestic production and exports, especially with cotton prices declining to Rs 56,000 per candy. This will enable exporters achieve their target of Rs 40,000 crore exports this year.

MP Muthurathinam, President, Tiruppur Exporters and Manufacturers Association, adds, besides, orders for New Year and Christmas, exporters are also receiving inquiries from Bangladesh. The recent price reduction will help exporters bag more orders.

While domestic sales were promising in the lead-up to Deepavali, overall demand fell short of expectations afterward. However, supported by the current decrease in yarn prices, export orders for Christmas and New Yearare likely to improve, he adds.

According to industry sources, this is the third price cut in 2024 after a reduction by Rs 20 per kg in Jan’24 and again by Rs 20 per kg in June’24.