The knitwear hub of India, Tirupur, is battling the constant rise in yarn prices. The prices for yarn knitwear production have increased by Rs 7 (US $0.073) across all varieties this month, taking the total increase to Rs 41 (US $0.43) over the past five months.
The Centre’s 11% import duty waiver on cotton between August and December last year kept prices stable, however, with the withdrawal of the duty exemption in December, imported cotton became costlier, pushing domestic cotton prices by Rs 4,000 (US $42) to Rs 5,500 (US $58) per candy.
The price increase is partly driven by global factors, including higher crude oil prices due to geopolitical tensions, which have raised the cost of viscose and polyester yarn.
However, S Jagadesh Chandran, honorary secretary of the South India Spinners’ Association (SISPA), noted that yarn prices have not risen disproportionately compared to cotton prices, though synthetic fibre costs have increased.
After the latest hike, combed yarn prices range from Rs 224 (US $2.35) per kg for 10s count to Rs 352 (US $3.69) for 40s, while semi-combed yarn prices range from Rs 289 (US $3.03) to Rs 342 (US $3.59) per kg, depending on the count.
Tiruppur Domestic Garments Manufacturers Association (TIDGMA) has increased the rate for domestic knitwear by 5% whereas Dyers Association of Tiruppur (DAT) raised its rates by Rs. 10 (US $0.10) per kg for light colour fabrics, Rs 15 (US $0.16) for medium colour, and Rs 20 (US $0.21) for dark colours.
Similarly, elastic manufacturers have also issued announcements regarding price hikes and production stoppages, for instance, the price of polyester yarn has risen by 35% over the past 15 days.
