Hosiery yarn prices in Tirupur have increased by Rs. 20 (US $0.21) per kg across varieties in May, marking the second hike this month and pushing the cumulative rise over the past five months to Rs. 61 (US $0.63) per kg, according to industry sources.
Tirupur, one of India’s largest hubs for readymade garment manufacturing and exports, contributes more than 68% of the country’s knitwear exports. Hosiery yarn, a key raw material used in knitwear production, has witnessed sustained price volatility in recent months, largely tracking fluctuations in cotton prices.
Industry stakeholders said the Union Government’s decision to waive the 11% import duty on cotton between August and December last year had helped stabilise domestic prices. However, after the exemption ended in December, imported cotton became more expensive, resulting in a rise of Rs. 4,000 (US $41.57) to Rs. 5,500 (US $57.16) per candy in domestic cotton prices.
Following the increase in cotton prices, hosiery yarn rates were raised by Rs. 7 (US $0.073) in February and remained stable until mid-March, when another Rs. 7 (US $0.073) increase was announced. Prices subsequently rose by Rs. 10 (US $0.10) each on 1st April and 16th April, followed by an additional Rs. 7 (US $0.073) hike on 1st May. The latest increase of Rs. 20 (US $0.21) has intensified concerns among garment manufacturers in the region.
Industry sources attributed the rising yarn prices not only to domestic cotton costs but also to global factors, including elevated crude oil prices amid geopolitical tensions, which have driven up viscose and polyester yarn prices. Cotton prices, which had already climbed to around Rs. 65,000 (US $675.51)–Rs. 70,000 (US $727.47) per candy earlier this year due to supply constraints, have further added to the cost burden on mills and manufacturers.
Against this backdrop, the latest increase in hosiery yarn prices is estimated to have raised garment manufacturing costs by 15% to 20%, according to industry estimates.
Hosiery yarn is widely used in the production of undergarments, vests and briefs. Following the latest revision, combed yarn prices range from Rs. 244 (US $2.54) per kg for 10s count to Rs. 372 (US $3.87) per kg for 40s count. Semi-combed yarn prices now range between Rs. 309 (US $3.21) and Rs. 362 (US $3.76) per kg, depending on the count.
