Hit hard by the rising prices in yarn (per kg), the readymade garment/knitwear units have requested the spinning mills not to resort to any further hike in yarn prices and look at reducing the rates due to sharp fall in cotton price in the last four days.
According to industry sources, the cotton prices (per candy) have gone up from R33,000 in April to R49,000 in July, which forced the spinning mills to increase the yarn price by R30 a kg from R224 to R254. Following the intervention by the Union textiles ministry, Cotton Corporation of India (CCI) started releasing cotton in the open market to MSMEs directly and the prices were down by R2,000 a candy during the last week.
Tirupur Exporters’ Association president A Sakthivel said in a statement here on Monday, “We understand that the mills have increased the hosiery yarn prices further to increasing of cotton prices and as of now, the cotton prices have come down by R2,000 per candy and in this scenario, the inclination of mills to increase the cotton yarn prices continuously will totally affect the Tirupur garment export sector.”
“We wish to add that after Brexit, the pound has depreciated by about 10% and as an impact of this, our members are already suffering losses. We also wish to emphasise a point that the yarn rate has not been increased to this level in China and because of this, we are losing our competitiveness in the global market.We have an apprehension that the business created over the period of years may go out of India and the once the business is lost, it would be difficult to bring it back,” he added.