The price of yarn has risen by ₹ 10 on Wednesday, a day after the announcement of the Union Budget and this has come as an added distress to the industry due to the fear of losing international orders to competitors.
Tirupur: The yarn price has increased by ₹ 10 in Tirupur, leading to huge distress for the sector, as the international orders obtained might get affected.
Tirupur district is the capital of knitwear production in India. Tirupur, called the dollar city that earns foreign exchange of ₹ 26,000-crore per annum through hosiery exports, produces 60% of the total knitwear produced in India.
The knitwear manufactured here is exported to countries like the USA, Europe, Australia and Canada. The industry is currently worried as a ray of hope shining at the end of the tunnel might start diminishing, as the yarn price has gone up by ₹ 10.
With orders starting to arrive again after the decrease in pandemic wave, the rise in yarn prices has emerged as a major headache for knitwear manufacturers. In November 2020, yarn was sold between ₹ 220 and ₹ 230, while it rose by 50% costing about ₹ 330 to ₹ 380 last year.
The hosiery manufacturing companies will face losses while finishing up orders received from abroad. Cotton manufacturers were expecting the 11 percent tax cut on cotton imports in the present year’s budget, but the no announcement was made in this regard in the budget released on Tuesday.
The price of yarn has increased by ₹ 10 on Wednesday, just after the Union Budget is announced, and due to this, export companies are in danger of losing orders to the competitor industries such as China, Vietnam, Cambodia, Bangladesh, and Sri Lanka.
The exporters are concerned that the new export subsidy of RODDEP by the Government of India will provide a subsidy of ₹ 10 per kg for yarn exports, leading to a shortage of yarn availability suitable for domestic demand and there is a danger of a further increase in yarn prices in the coming days.
Similarly, factors including taxation of imported cotton and cotton hoarding are also affecting the knitwear sector. They have demanded that the export of raw materials has to be curbed and instead the produced goods has to be exported which will be increasing employment opportunities and the economy by exporting manufactured goods.
Tirupur district is the capital of knitwear production in India. Tirupur, called the dollar city that earns foreign exchange of ₹ 26,000-crore per annum through hosiery exports, produces 60% of the total knitwear produced in India.
The knitwear manufactured here is exported to countries like the USA, Europe, Australia and Canada. The industry is currently worried as a ray of hope shining at the end of the tunnel might start diminishing, as the yarn price has gone up by ₹ 10.
With orders starting to arrive again after the decrease in pandemic wave, the rise in yarn prices has emerged as a major headache for knitwear manufacturers. In November 2020, yarn was sold between ₹ 220 and ₹ 230, while it rose by 50% costing about ₹ 330 to ₹ 380 last year.
The hosiery manufacturing companies will face losses while finishing up orders received from abroad. Cotton manufacturers were expecting the 11 percent tax cut on cotton imports in the present year’s budget, but the no announcement was made in this regard in the budget released on Tuesday.
The price of yarn has increased by ₹ 10 on Wednesday, just after the Union Budget is announced, and due to this, export companies are in danger of losing orders to the competitor industries such as China, Vietnam, Cambodia, Bangladesh, and Sri Lanka.
The exporters are concerned that the new export subsidy of RODDEP by the Government of India will provide a subsidy of ₹ 10 per kg for yarn exports, leading to a shortage of yarn availability suitable for domestic demand and there is a danger of a further increase in yarn prices in the coming days.
Similarly, factors including taxation of imported cotton and cotton hoarding are also affecting the knitwear sector. They have demanded that the export of raw materials has to be curbed and instead the produced goods has to be exported which will be increasing employment opportunities and the economy by exporting manufactured goods.