Constant rise in the price of cotton yarn puts Karur home textile industry in a quandary

Constant rise in the cost of cotton yarn puts Karur home textile industry in a quandary When the manufacturers and exporters were yet to come to term with abnormal increases in cost, the rate of yarn has once again shot up by.

Key points

• The textile manufacturers in Karur source cotton yarn from the mills in Coimbatore, Dindigul, Virudhunagar, and Vellakoil.
• The home textile manufacturers in Karur primarily export to the U.S.
• Constant rise in the cost of cotton yarn has put the home textile industry in Karur in a quandary.
• And Europe, remarked that they had not yet come out from the impact of the recent geopolitical tensions between the U.S.
• When the manufacturers and exporters were yet to come to term with abnormal increases in cost, the rate of yarn had once again shot up.

Notably, the home textile manufacturers in Karur primarily export to the U.S. And Europe. Photo Credit: FILE PHOTO.

For context, the textile manufacturers in Karur source cotton yarn from the mills in Coimbatore, Dindigul, Virudhunagar, and Vellakoil. Most suppliers, who supply cotton yarn, are members of the Southern India Mills Association and Tamil Nadu Spinning Mills Association. The cost of cotton yarn, a key raw material for textile manufacturing units, witnessed a sudden jump in June during the recent West Asia crisis. It went up by 30% to 40%. One kg of yarn with high counts was quoted at ₹400, up from ₹300. Textile manufacturers and exporters had flagged the matter to the Centre, and the manufacturers termed that the rate rise was highly abnormal. Though the Centre, acting on the demand of the textile industry, removed the import duty on cotton yarn, the players in Karur remarked the sops had assisted the garment manufacturers in Tiruppur to an extent.

When the manufacturers and exporters were yet to come to term with abnormal increases in cost, the rate of yarn had once again shot up. It has gone up by 10% in the last three weeks, thereby raising concern among the manufacturers.

Constant rise in the cost of cotton yarn is a cause of concern. It not only increases the operative cost but additionally puts pressure on the buyers-exporters relationship. Moreover, it will have a cascading effect on various aspects of manufacturing and exporting, notes P. Gopalakrishnan, president, Karur Textile Manufacturers and Exporters Association.

Notably, the home textile manufacturers in Karur. This person primarily export to the U.S. And Europe, remarked that they had not yet come out from the impact of the recent geopolitical tensions between the U.S. And Iran. Consequently, the rates of numerous essential materials required for textile manufacturing – including petroleum-based products such as polyester, chemicals applied in dyeing industries, polythene, and packing materials – witnessed steep rise. Further growth in cotton yarn rate had continued to the woes of the textile manufacturers.

In short, constant rise in the price of cotton yarn puts Karur home textile is the central thread here, and readers can expect follow-up reporting as the picture becomes clearer.