Crying foul play ahead of an important international home textile fair, Karur textile exporters are apprehensive of bagging fruitful orders following the recent hike in yarn prices that they see as “steep and unwarranted” and one that could jeopardise the industry in the home textile hub of the country.
Coming days ahead of the annual Heimtextil Fair in Frankfurt, Germany, where the Karur exporters usually bag export orders worth crore of rupees, the yarn price rise has hit them at the wrong time. This year, the Fair is scheduled for the second fortnight of January next.
Having carved a niche for themselves in the international home textile market, Karur exporters have been facing one impediment after another that threatened their very survival. Stimulus packages and monetary support mechanisms by the Centre helped the industry stay afloat and remain competitive globally.
But yarn price had been a source of trouble for the exporters. This time around, our woes have compounded with the yarn traders jacking up the price of important and widely used varieties with the Heimtextil Fair round the corner, observe Karur Textile Manufacturer Exporters’ Association members. One could gauge the importance of the fair from the fact that more than 200 delegates from Karur alone visit Frankurt every year. The agreements initialled there would cover important seasons in the United States and Europe in particular.
Industry sources say that in the past two weeks, yarn varieties have seen a rise averaging 10 to 15 per cent, when no reason existed. Though the yarn traders and spinning mills cite an increase in the price of raw cotton, power shortage and labour-related problems, the purported move to allow export of “surplus” cotton has also contributed to the problem. The avarice of some hoarding traders has added fuel to the fire, industry sources said.
The price of yarn varieties including 10s, 30s and 40s that find great use in the Karur market have gone up considerably, by about 15 per cent. Already the exporters are finding the going tough and the recent hike in yarn prices would cripple the industry that is tantalisingly poised.
We are helpless and we seek the urgent and immediate intervention of the Centre to rein in the price rise, say exporters. Any delay on the part of the stakeholders could jeopardize the chances of Karur home textile exporters, they fear.
