Tiruppur Garment Industry Moves To Tackle Rising Yarn Prices
Garment manufacturers in Tiruppur have formed a Joint Committee of Tiruppur Textile Cluster to address the sharp increase in cotton yarn prices and its impact on the region’s textile and apparel industry.
Representatives of nine industry associations, including job-working units, met on September 2 and agreed to engage with four major textile mill associations. The two sides are scheduled to meet on September 9 to discuss the price situation and formulate measures that can be submitted to the State and Central governments.
A key concern is the price differential between yarn manufactured in Tamil Nadu and other states. R. Dhamodharan, secretary of the South India Hosiery Manufacturers Association, said Tamil Nadu-produced yarn is currently Rs 18-20 per kg costlier than comparable yarn from Gujarat, increasing pressure on garment and fabric manufacturers.
The industry had earlier sought the removal of import duties on cotton, which has been implemented until October. However, manufacturers said the move has not yet resulted in a meaningful reduction in yarn prices.
The committee will also examine the impact of rising yarn exports on domestic availability and competitiveness. Indian yarn exports to China increased from Rs 348 crore in April-June of the previous financial year to Rs1,668 crore this year, while exports to Vietnam rose from Rs 263 crore to Rs 500 crore.
The September 9 meeting is expected to pave the way for a joint representation to the governments.
