(MENAFN- KNN India) Tiruppur, Mar 9 (KNN)
The surge in yarn prices, triggered by a rise in cotton rates, has compelled grey fabric manufacturers in Tiruppur to reduce production by up to 50 per cent starting from Friday.
Initially priced at Rs 58,000-Rs 59,000 per candy in the first week of February 2024, the price of yarn rose to Rs 62,000 by March 8.
K Sakthivel, Coordinator, Tamil Nadu Textile Manufacturers Association, expressed concern, stating that textile and power looms, which are major job providers in Palladam, have been facing mounting losses over the past two years, reported TNIE.
Despite expectations of increased orders during Deepavali, disappointments ensued. With the recent surge in cotton prices leading to a jump in yarn costs from Rs 15 to Rs 25 per kg, coupled with existing challenges such as high-power tariffs, the textile industry's stability is further threatened.
“To increase our chances of survival, we have decided to halt production by up to 50 per cent from today. More than 300 large textile manufacturers have halted production,” Sakthivel added.
A C Eswaran, President, South India Hosiery Manufacturers Association (SIHMA), highlighted the discrepancy in cotton prices, which typically range between Rs 55,000 and Rs 57,000 per candy.
He noted that during the current season, the cotton market received 215 lakh bales, with a substantial portion acquired by the Cotton Corporation of India (CCI) and cotton traders. Eswaran emphasised the need for government intervention to stabilise prices.
An official from the textile department acknowledged receiving representations from trade bodies and informed about ongoing communication with the union ministry regarding the volatile market conditions attributed to the limited arrival of cotton. However, there is optimism that the situation could stabilise in the future.
(KNN Bureau)
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