Manufacturers of the knitwear hub of India, Tirupur district in Tamil Nadu have joined hands to launch the Tirupur Yarn Manufacturers Association to combat the issues including delayed payments and increasing production cost.
Speaking about it, the executive committee members of this new association, expressed that they have been facing the increasing operational challenges and subsequent stress for five years. One of the members of this newly-launched association spoke about the impact on their credibility due to rising electricity tariffs and delay in payment from the buyers.
The association also mentioned the issue of rising prices of cotton. The members remarked that the price of cotton has risen by Rs. 2,000 (US $ 23.30) per candy in the past 10 days, which has caused severe fluctuations in the production planning. Consequently, the members have requested the Cotton Corporation of India to stabilise the cotton prices in order to sustain the textile ecosystem.
As for the buyers issue, one of the association members expressed that increased production cost is leading to squeeze in their margins as they are unable to transfer this cost to the buyers. Given the growth in knitwear industry in both domestic and international arenas and the expectations of reaching Rs. 1 lakh crore (US $ 11.65 billion) in near future, yarn manufacturers are battling the issue but with this association, they are aiming at collectively seeking solutions to navigate the current situation.
