COIMBATORE: Textile mill owners in Tamil Nadu have for a second time agreed to roll back cotton hosiery yarn prices by around 5%, thus providing temporary relief to garment exporters. This agreement was reached in the presence Union textile minister Dayanidhi Maran here.
Representatives from the Confederation of Indian Textile Industry (Citi), Apparel and Export Promotion Council (Aepc), Southern India Mills Association (Sima), Tamil Nadu Spinning Mills Association (Tasma) and Tirupur Exporters' Association (Tea) have unanimously taken this decision.
A few weeks ago, the Tirupur exporters and mill owners signed a pact to reduce yarn prices by around 5%. As the price cut was not sufficient, the exporters once again requested the minister to bring down the yarn prices further. The unprecedented rise in cotton yarn prices in the recent past has created a rift in the industry. Garment manufacturers are blaming the mill owners for a disproportionate rise in yarn prices compared to cotton costs, while mill owners point to high cost of power and labour shortages.
Early this month, the price of 40's count cotton yarn jumped to Rs 200 per kg. The rise was attributed to an increase of cotton prices last month. Tamil Nadu accounts for 47% of India's spinning capacity and it accounts for more than 40% of Indian yarn exports.
Rajendra J Hinduja, the managing director, Gokaldas Exports, told the ET only lower raw material prices can help exporters to remain competitive.
TEA president A Sakthivel added that exporters are not able to take orders due to high input costs.