High cotton price has been a burning issue since more than a year and despite multiple efforts, it continues to hurt the growth of the Indian apparel industry.
In Tamil Nadu, Tiruppur apparel exporters held two-day-long strike again to raise the issue. The strike was called to attract the Government’s attention towards the growing price concern.
The Tiruppur cluster, which produces apparel worth Rs. 200 crore a day, faces a loss of almost Rs. 400 crore per day owing to the two-day strike.
Raja M. Shanmugham, President, Tiruppur Exporters’ Association (TEA) said the strike was successful on the closure point, but they are still waiting for solutions. Yarn prices increased almost 75 per cent in the last two years, while the price of 40s count hosiery yarn, which was Rs. 230/kg before the pandemic, has risen to Rs. 400/kg now.
Exporters are now expecting a meeting with MOT in the coming days wherein the issue will be raised again.
Meanwhile, the powerloom, garment and hosiery manufacturers of Palladam and Tiruppur have announced a hunger strike tomorrow (21 January) throughout the state.
Every day, Tiruppur consumes approximately 30 lakh kg of yarn and the hike in raw material prices has hit production at the garment units.
The units are demanding withdrawal of 10 per cent import duty on cotton, as well as measures to control yarn prices.
