Knitwear exporters from the southern Indian garment hub of Tirupur have sought intervention of Union Textiles Minister K Sambasiva Rao for reduction of yarn prices, which have been hiked recently by spinning mills.
In the last 10 days, spinning mills have twice raised prices of yarn by Rs. 5 per kg for all counts, following an increase in the price of benchmark Shankar-6 cotton variety from about Rs. 39,000 per candy of 355 kg in December 2013 to Rs. 43,000 now.
Accordingly, the prices of 40s combed hosiery yarn have risen from Rs. 241 per kg in December 2013 to Rs. 256 per kg at present.
In a letter to the Textiles Minister the Tirupur Exporters’ Association (TEA) president A Shaktivel said the spinning mills have justified the increase in yarn prices.
TEA wants the Minister to use his good offices to rollback the increase in yarn prices, Mr. Shaktivel said.
Owing to efforts taken to reach the export target fixed by the Ministry of Textiles, there is an increase in orders, and the increase in yarn prices at this juncture is a blow on the knitwear sector and it would be difficult to achieve the target set for this year, he added.