Weavers and manufacturers of Tamil Nadu are weathering the twin problems of ever-rising yarn price and the floods in the northern India. Yarn prices have gone up by Rs20-30 for every bundle of five kg from the month of August, informed Weavers association.
A leading yarn dealer and committee member of weavers association informed that increase of one rupee results in a corresponding increase of Rs3-4 per metre of cloth, which will make sales difficult and unviable economically as they operate on a very little profit margin.
Clean cotton prices have gone up by Rs8 per kg and the marginal increase in the prices of yarn does not really show the substantial increase in cotton prices, informed South India Mills Association (Sima).
Another factor igniting the prices of yarn is the fact that from the total crop of about 245 lakh bales, over 40 lakh bales are exported to China which is facing cotton shortage.
It is further estimated that exports may rise to 60 lakh bales next year onwards as they fetch more revenue and it will only add fuel to the fire.
According to Sima, out of 1,800 mills operating very few have the stocks with them to face this onslaught as most companies buy yarn on spot markets.
Weavers have demanded immediate government intervention as they blame the yarn makers of using small delay in delivery from northern states as an excuse to increase the prices.
Adding to the agony is the fact that the stocks are in gowdowns due to the delay in the transportation to the northern states owing to the rain and flooding.
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Taiwan Textile Federation (TTF)")
