Karur’s Textile Industry Under Pressure Due to Surge in Cotton Yarn Prices
Karur: A sharp rise in cotton yarn prices—driven by ongoing geopolitical tensions in West Asia and disruptions in global supply chains—has placed the textile industry in Karur, a major textile hub in Tamil Nadu, under significant pressure. Industry representatives state that rising raw material costs are impacting both production and export activities.
According to industry sources, textile manufacturers in Karur rely primarily on spinning mills in Coimbatore, Dindigul, Virudhunagar, and Vellakoil for their yarn requirements. Over the past six weeks, an imbalance between supply and demand has caused the price of coarse-count cotton yarn to surge by 30 to 40 percent. Prices for high-count yarn have risen from approximately ₹300 per kilogram to ₹400 per kilogram—an increase the industry considers extraordinary.
Although the central government granted relief on cotton import duties in response to demands from the textile industry, traders in Karur argue that the benefits have primarily accrued to garment manufacturers in Tiruppur. While prices for yarn used in the garment sector have dropped by 3 to 4 percent, there has been no significant impact on the prices of the coarse yarn used in Karur.
P. Gopalakrishnan, President of the Karur Textile Manufacturers and Exporters Association, stated that the current surge in cotton yarn prices is unprecedented and has severely impacted the industry's cost structure. He emphasized that price stability is essential for the smooth operation of the industry.
Industry bodies have urged both the central and state governments to intervene. According to traders, escalating tensions between the US and Iran have affected global trade and shipping, leading to price hikes for essential items such as polyester, dyeing chemicals, polyethylene, and packaging materials. Exporters believe that if this situation persists, it could have a negative impact on the competitiveness, export growth, and employment opportunities of Karur's textile industry.
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