The yarn price has been increased by ₹.30 on 1st January amidst loss in exports due to rising yarn prices.
Tirupur: The yarn price has been increased by ₹30 on 1st January amidst loss in exports due to rising yarn prices.
The price of yarn has gone up by ₹30 per kg on New Year's Day which has resulted in a price of ₹350 per kg. Exporters are anguished that the hosiery trade will be severely affected due to the continued rise in yarn prices.
More than 70% of the knitwear produced in Tamil Nadu is from Tirupur. In the last few months, the price of yarn, the main raw material for knitwear production, has been drastically increased from ₹120 to ₹150 in the last year alone and prices have been fixed between ₹300 and ₹350, resulting in huge losses for the knitwear industry. On November 26, 117 hosiery and allied organizations staged a full-fledged protest and hunger strike to press for demands despite repeated requests to the centre to curb the increase in yarn prices and did not take any action. At this stage, the Cotton Corporation of India reduced the price of all types of yarn by ₹10 last December.
The yarn industries fixed the yarn price on the 1st of the month based on the cotton price and the stated increased the hosiery price accordingly from November 2020 to April 2021. Over the past few months, they have continued to pay the price of yarn uniformly. All types of yarn prices were hiked to ₹50 in November shocked the industry.
A price hike of ₹100 in the last year, shocked the industry when ₹50 increased in just a month. A hike of ₹30 in a day has further worried the industry after the reduction of ₹.10 last month. This has again increased the price of yarn from ₹350 to ₹370 per kg.
According to Muthu Ratnam, president of Tirupur Exporters and Manufacturers Association, “The rise in yarn prices every month will affect the knitwear industry, leading to its extinction. It is unfair to increase yarn prices on the grounds of a cotton price hike. The Centre should find an immediate solution, if not the knitwear sector will cease to exist.”
He urged the centre to look into the issue and provide a permanent solution at once lamenting that the situation will soon reverse where the industry will have to import yarn in place of exporting.
