Despite the Ministry of Textiles (MoT) intervention and investigation of sudden hike yarn price, industry is facing sky-rocketing yarn price.
This hike has threatened beleaguered knitwear industry and apparel manufacturers as the disturbing trend of the price hike seems to be never-ending. The ever-increasing price of yarn, which has gone up by 43 per cent a kg in just eight months, and the spiralling cost of raw materials like zippers, threaten to unsettle the multi-crore knitwear industry in Tirupur.
As per a report of a leading English daily Deccan Herald Raja M. Shanmugham, President, Tirupur Exporters’ Association (TEA) has said, “The spiralling cost of raw materials is the biggest problem that the knitwear industry in Tirupur is facing today. The cost of yarn alone has gone up by over 40 per cent in the past eight months. Not just yarn, every other raw material that goes in apparel has witnessed a price hike which has, in turn, led to an increase in the input costs.”
It is also pertinent to mention here that majority of the overseas buyers do not agree to an increase in the product cost after signing the agreement.
Hike in yarn price is a major issue and apparel manufacturers are facing these challenges since more than eight months.