Tiruppur garment manufacturers demand steps to control yarn prices

Several garment manufacturers shut operations for a day on Friday demanding measures by the government to control yarn and cotton prices.

A large number of manufacturers also participated in a hunger strike.

President of Tirupur Exporters and Manufacturers Association Muthurathinam said the yarn price was ₹210 a kg in January this year and ₹350 a kg now. “MSME units are unable to fulfil the orders they have taken,” he said.

A garment exporter needed 90 days to ship an order. If there were price hikes during the three-month period, the exporter would suffer losses. The prices were revised frequently, he said.

China, Bangladesh, and Vietnam were competing countries and buyers would look at different if the prices offered by Indian exporters were not competitive, he said.

In the case of manufacturers supplying to the domestic market, the GST hike announced by the government from January would be an additional burden.

‘Ban export of yarn’

He said the government should ban export of cotton and yarn and the Cotton Corporation of India should supply cotton only to the actual users. “We have also asked for formation of a knitwear board and the State government should have an organisation similar to the Cotton Corporation to source cotton and supply to textile units in Tamil Nadu,” he said.

Domestic manufacturers said they supported the strike fully as they were unable to meet the high cost of raw materials.

The garment unit workers also participated in the strike.

Raja Shanmugham, president of Tiruppur Exporters Association, which supported the strike, said cost of dyes and chemicals had increased 40 % in the last one year and prices of corrugated boxes were up 30 % to 40 %. Yarn prices jumped 55 % in the last 12 months.

“There are price challenges. The exporters should also demand higher prices from the buyers,” he said.

K.E. Raghunathan, convenor of Consortium of Indian Associations, said exporters faced multiple issues such as high freight costs, lack of adequate RODTEP schemes and delay in receipt of refunds of input taxes. “The hands which feed others are now on hunger strike to convey their insecurity in life,” he said.

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Printable version | Jan 28, 2022 12:01:20 PM |

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