High yarn price: Units in Tirupur to remain shut today

“An abnormal hike in yarn prices coupled with its irregular supply for the past three months has had a cascading effect on the industry. It has already crippled the entire value chain, while also leaving Tirupur partially tripped,” said Raja Shanmugam, president of Tirupur Exporters Association.

To bring the issue of exorbitantly rising yarn prices to the attention of Centre and state governments, a conglomeration of 27 knitwear stakeholders’ associations and eight trade unions have decided to go for one-day strike in all the manufacturing units and shops.

It has also been decided by the protesting units to go for a peaceful procession from Tirupur Kumaran statue to nearby Tirupur Corporation in the morning and thereafter submit a petition to the District Collector.

“At a time, when knitwear exporters are taking efforts to revive from COVID-19 impact, the increase in prices of yarn has triggered a reversal of trend. Exporting units are struggling to sustain as the manufacturing eco-system has been affected, further impacting the overall performance of the sector,” said Raja M Shanmugham.

The garment manufacturers rued that acute shortage of yarn in domestic market has spurred a rise in production cost for the hosiery and knitwear sector. Yarn prices have increased by more than 40 per cent in the last few months resulting in sharp increase in prices of end products too.

“Export of yarn should be regulated to ensure its availability in the domestic market. Encouraging export of garments in place of yarn will fetch more forex earnings and generate additional employment, that too for women workers hailing from rural areas,” claimed garment manufacturers.