The uncontrollably increasing yarn prices are now wreaking havoc on the Indian apparel and textile manufacturing industry.
After holding several meetings, the apparel exporters based out of Tirupur have now decided to write letters to PM Narendra Modi.
It’s worth mentioning here that the Tirupur Exporters’ Association (TEA) recently held a meeting with the association’s members and discussed the issue of increasing prices of yarn.
It was learnt in the meeting that the association will appeal to the Government to ban yarn exports to control prices in the domestic market.
Now that the yarn prices are continuing to shoot up, the knitwear manufacturing hub of India seems to be livid with the situation.
“We are all writing to PM addressing the yarn price hike issue and requesting Government to restrict yarn export or ban for some time. This abnormal hike will kill all of us,” told P. Thiruvasakamani, Director, TAS Textiles, Tirupur to Apparel Resources.
“We have formed a forum of 250 small and medium apparel exporters from Tirupur and we have taken up the issue with various Government offices including PMO. Our aim is to solve this issue as soon as possible,” commented Thiruvasakamani.
The exporters also request all the stakeholders to extend their support so that the yarn price can be streamlined.
Meanwhile, India Ratings and Research (IRR) has also come up with a big statement that China’s demand for India’s cotton has pushed domestic yarn prices higher and, accordingly, domestic yarn production increased in January 2021, led by a strong export and moderate domestic demand during December 2020.
IRR said that the cotton yarn prices increased 15 per cent on monthly basis and 30 per cent on yearly basis in January ’21.
Commenting on the issue, R. Sakthivel, CEO, Daffodil Fashions, Tirupur, said that the industry has landed up in this situation which was expected after coronavirus lockdown.
He added “International demand and price trend on fibre/yarn is supporting mills to utilise the opportunity. But, this is purely unethical. It is clearly understandable to all of us that the mills are utilising the demand and supply gap in a way that can be professional but not ethical. With the help of some mills as frontline warrior who don’t have base of regular customers and don’t have business ethics, the yarn industry is increasing or changing price any time based on their available stock. All other mills and associations are utilising the same and increasing the price on next month list by stopping PO acceptance,” averred Sakthivel.