Yarn price up by Rs 40/kg; Tex units to strike

COIMBATORE: Cotton yarn prices continued to record a sharp increase by Rs 40 per kg at one go on Monday.

Reacting to it, the knitwear units in Tirupur district have announced halting of production for six days from May 16. Various stakeholders in textile production, including dyeing units, exporters and trade unions have pledged their support to the strike to condemn the Centre over its failure to control yarn prices. The protest is likely to cause a production loss of Rs 200 crore per day and a total of Rs 1,200 cr for six days.

Demanding the Centre to ban yarn and cotton yarn exports to bring down the prices, Raja M Shanmugham, president of Tirupur Exporters Association (TEA) said cotton yarn exports to competing countries actually helped the competitors to gain an edge in exports, with their customs duty benefits in EU and Canada markets.

“Once if the buyers leave our country and resort to our competing countries, it would be difficult to bring them back,” said Shanmugham, in an appeal to Upendra Prasad Singh, Textile Secretary. Yarn price rise comes within a month after its cost rose by Rs 30 per kg in April. Since January, this year alone, the yarn prices have increased by around Rs 110.

The price rise comes despite the Centre lifting import duty on cotton. Industrialists further urged the Centre to act against hoarding to rein in yarn prices.