Rising Yarn Prices Push Up Tiruppur Knitwear Production Costs by 15%
Tiruppur: The continuously rising prices of cotton yarn have raised concerns within Tiruppur's knitwear industry. According to exporters, knitwear production costs have increased by approximately 15% this year due to the steady rise in yarn prices. However, overseas buyers are unwilling to accept these higher prices, forcing exporters to absorb the additional costs themselves.
On Tuesday, prices for various types of cotton yarn rose by up to ₹5 per kilogram, with some spinning mills hiking rates by as much as ₹7 per kilogram. Industry data indicates that since the beginning of the year, the price of certain yarn varieties has increased by more than ₹80 per kilogram.
K.M. Subramanian, President of the Tiruppur Exporters Association, stated that rising cotton prices are the primary reason for the hike in yarn costs. He noted that the price of a 'candy' of cotton (356 kg) has risen from ₹58,000 at the start of the year to ₹74,000 now. He added that despite the Central Government temporarily waiving import duties on cotton from June to October, prices did not see the expected decline.
S. Shanmugasundaram, President of SIHMA, stated that prices for some cotton yarn varieties have surged by up to ₹110 per kilogram this year. He urged the Centre to intervene immediately and regulate yarn exports.
Industry bodies have warned that if the price surge continues, it could have an adverse impact on Tiruppur's knitwear sector and employment.
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