Increase in cotton price hits textile sector

With the landing price of cotton in Coimbatore shooting up to more than Rs. 50,000 a candy, cotton yarn prices have also gone up. This has resulted in slow demand of yarn from weavers and garment manufacturers.

According to industry sources, prices of hank yarn has increased by Rs. 4 a kg, warp yarn by Rs. 10 a kg and hosiery yarn by Rs. 7 a kg during the last one month.

M. Kumarasamy, a job working power loom weaver at Somanur, says that yarn supply to the job working power loom units has reduced during the last two months because of the yarn price.

The master weavers supply yarn to the job working units once a week. They have reduced the quantity supplied every week because of the price.

According to A. Sakthivel, president of Tirupur Exporters’ Association, the hosiery yarn price went up last month too. Earlier, the power shortage problem was cited as the reason for increase in yarn prices.

Now, the power situation has improved, he said.

According to a Southern India Mills’ Association representative, cotton prices have increased drastically during the last two months.

Cotton availability is a problem as it is the end of the cotton season.

Yarn prices were stable during the last two months and have increased now only because of the cotton prices. Improvement in the power situation in the State has resulted in higher yarn production and there is no shortage in yarn availability. The offtake by weaving and garment units is low because of the prices.

K. Thirunavukkarasu, president of the South India Spinners’ Association, told The Hindu that the smaller textile mills here supply yarn mainly to weaving units in Maharashtra.

With rupee depreciating against the dollar, the cost of synthetic fibres has increased by nearly Rs. 12 a kg.

However, the demand for synthetic yarn is very low in Maharashtra and hence its prices have reduced by nearly Rs. 5 a kg.