The garment exporting units in Tiruppur will down shutters for two days - January 17 and 18 - to protest against the high cotton and yarn prices.

Raja M. Shanmugham, president of Tiruppur Exporters’ Association, told presspersons in Tiruppur on Wednesday that in the last one year, cotton yarn prices have shot up 80 %. The yarn prices were increased by ₹30 a kg this week. “It is not just the high prices but the uncertainty that is affecting the exporters as they cannot negotiate higher prices for orders already booked and are under execution,” he said.

Production peaks at garment exporting units between November and March every financial year and the high input cost at this period is a neck breaker.

“We need to safeguard the sustenance of this industry. The government should intervene at this juncture as this (garment industry) is also a labour-intensive industry,” he said.

Cotton and yarn prices have been increased to abnormal levels and the effect of this hike will trigger a disastrous effect on Tiruppur knitwear garment exporting sector. It will have a cascading effect on all stakeholders of knitwear garment exporting units, including banks and cotton producing farmers.

Mr. Shanmugham said he is trying to meet the Union Textile Minister to explain the challenges that the exporters and garment manufacturers are facing and to seek the right strategy to control cotton prices. The government should remove the import duty on cotton as it is one of the factors leading to high cotton prices. Currently, international cotton prices are softening.

The Union Textile Secretary has called for a meeting with all stakeholders of the textile industry on Thursday and Mr. Shanmugham said he will highlight the distressing situation of the Tirupur garment exporting units. He has also written to all the textile mill associations to advise their members against further hike in yarn prices.

Published On : 05-01-2022

Source : The Hindu

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