TAMIL NADU

Roll back price increase: exporters

Knitwear exporters in Tirupur cluster have expressed shock over the decision by spinning mills to raise the prices of all counts of cotton yarn by Rs. 7 for a kilogram with immediate effect.

“The spinning mills should immediately roll back the hike made in the prices considering the difficulties faced by the apparel production industry owing to various adverse market-driven factors. Already, the price of yarn has been increased twice in July,” A. Sakthivel, president of Tirupur Exporters Association, pointed out.

Mr. Sakthivel added that the spinning mills had been citing the power crisis as the reason for increasing the yarn prices on earlier occasions.

“Now the power situation is better and hence, the mills should reconsider its pricing strategy for making a win-win situation for them and the exporters of end products,” he said.

Spinning mills’ sources told The Hindu that the steep increase in the price of cotton, to the tune of almost Rs. 6,000 per candy in the last one month, made the mills to revise the sale price of yarn upwards.

“Actually, the increase of yarn prices by just Rs. 7 is not sufficient to offset the huge escalation in cotton prices,” sources said.

R. Girish, founder member of Tirupur Exporters and Manufacturers Association and an exporter, said the Union Government should intervene to control the domestic prices of cotton by releasing the stocks held by Cotton Corporation of India to the mills.



Sources in spinning mills say steep

increase in price of cotton, to the tune of almost Rs. 6,000 per candy in the last one month, made mills to revise sale price of yarn upwards