Tirupur garment units to down shutters on Monday against steep rise in yarn prices

Tirupur-based industry representatives spoke to PTI about their ordeal in terms of order cancellations and margins being hit owing to the yarn price hike, and appealed that the Centre must regulate the exports of yarn, the key raw material in garment manufacturing. 

They shared that the shortage of yarn in the domestic market has led to a rise in production cost for the hosiery and knitwear industry. 

"We want the government to immediately regulate the exports to ensure the supply of yarn to the domestic industry," Tirupur Exporters Association President Raja Shanmugam told PTI. 

He stressed that the raw material should not be exported until the needs of the domestic industry are met. 

"We will register our protest on the ground through the voluntary closure on March 15 and take up the issue with the Commerce and Textile Ministries. We would also like to enlighten the Prime Minister''s Office," Shanmugam said. 

Joint Secretary of Tirupur-based South India Hosieries Manufacturers Association Shashi Prakash Agarwala said yarn prices have shot up by 40-45 per cent from October last year till now, leading to a rise in product prices. 

"Exporters are unable to take new orders because yarn prices have not increased in the international market whereas our raw material prices have gone up," Agarwala said. 

He argued that if yarn exports are capped, yarn prices will be controlled and the domestic garment industry will be in a better position. 

“We have been facing this price hike issue since last year which resulted in an increase in our product prices ranging from 1-1.5 per cent to 4 per cent. We have written to the Finance Minister and the Union Textile Minister to look into the steep rise in cotton yarn prices which is impacting most of the MSMEs," said Vinod Kumar Gupta, Managing Director, Dollar Industries Limited. 

He cautioned that many players are facing issues due to raw material shortage and might be forced to halt their operations if this continues. 

"This Voluntary Closure is an effort to unanimously raise our voices in support of the whole industry on the abnormal price hike of the yarn which is putting pressure on not only businesses but also on the consumers," Gupta said. 

Dollar Industries has a manufacturing facility in Tirupur.