Tirupur Exporters Association (TEA) today requested spinners not to increase prices of cotton yarn, as that would adversely affect the garment export sector.
In identical letters to the chairmen of two major associations, TEA president A Shaktivel requested them to advise members not to resort to an increase in cotton yarn prices as the prices have come down by Rs 2,000 per candy.
“We understand that the mills have started increasing hosiery yarn prices further to increasing of cotton prices. As of now, cotton prices have come down by Rs 2,000 per candy. In this scenario, the inclination of mills to increase the cotton yarn prices will totally affect the Tirupur garment export sector,” he said
The letters were sent to Southern India Mills’ Association here and Tamil Nadu Spinning Mills Association, Dindigul.
“We wish to add that after Brexit, the Pound has depreciated by about 10 per cent and due to its impact, our members are already suffering and incurring losses,” he said.
He emphasised that the yarn rate has not been increased to this level in China, which is a major competitor. Due to this, Indian exporters are losing competitiveness in the global market, not only affecting the performance but also consumption of yarn from the mills.