Feedback Here

fbook  tweeter  linkin YouTube
Global contents also translated in Chinese

Escalating hosiery yarn prices hits Tirupur garment sector

Garment manufacturers in Tirupur have urged textile mills in their region to drop the move to increase prices of hosiery yarn as cotton prices are climbing down. Cotton prices have come down by Rs 2,000 per candy (about 355 kg) and the inclination of mills to increase cotton yarn prices will severely affect Tirupur garment export sector, points out A Sakthivel, President, Tirupur Exporters' Association (TEA).

Hosiery yarn prices, which were being sold at Rs 216 per kg in April is now being quoted at around Rs 250 per kg after three rounds of price increases. The increase in hosiery yarn prices has not been commensurate with the rise in cotton prices, said K Selvaraju, Secretary-General, Southern India Mills' Association (SIMA). Even after accounting for the recent decline in cotton prices, the cost of clean cotton (after removing waste and short fibres) increased by Rs 52 per kg since in April while hosiery yarn prices have gone up by only by Rs 34 per kg. About 70kgs of combed hosiery yarn is typically produced from 100 kg of cotton. Around 85 kgs carded hosiery yarn is made from 100 kgs of cotton.

In a letter to SIMA, Sakthivel urged them to not resort to increase yarn prices when cotton prices are coming down. He said they had an apprehension that the business created over time may go out of India and once the business is lost it would be difficult to bring it back.

 
LATEST TOP NEWS
 


 
MOST POPULAR NEWS
VF Logo