‘Scale down hike in yarn price’

Staff Reporter

Tirupur: The Tirupur Exporters Association (TEA) has requested the member units of Southern India Mills Association (SIMA) and Tamil Nadu Spinning Mills Association (TASMA) to scale down the steep yarn price hike enforced by them with effect from December 1.

In a memorandum to both the associations, TEA president A Sakthivel had expressed the disappointment of the knitwear producers that the yarn prices were increased in the range of Rs. 12 per kg. to Rs. 15 per kg. depending on the products at a stretch.

While the cost of ‘40s counts yarn’ was raised by Rs. 15 per kg., that of ‘30s and 34s count yarns’ increased by Rs. 12 per kg.

Raw materials

“The apparel industry is not in a position to absorb such abominable price hike of raw materials as the orders from the foreign buyers, specifying prices and delivery schedule, were placed with us well in advance and hence, the increase at this juncture will have a cascading effect on the export potential of the cluster,” he said.

Mr. Sakthivel, in the memorandum, stated that if the end products get costlier, especially when the apparel sector was trying to reinvent itself post-recession, there was every possibility of foreign buyers shifting their focus to cheaper outsourcing destinations.

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