TEA urges SIMA not to upsurge cotton yarn prices

Dr. A. Sakthivel, President, Tirupur Exporters Association (TEA) has appealed M. Senthilkumar, Chairman, Southern India Mills’ Association (SIMA) to direct their members not to increase yarn prices as this will affect the Tirupur garment export sector. “The mills resorted to increasing of hosiery yarn prices due to growing cotton prices. But, now the cotton prices have down surged to Rs. 2,000 per candy. The currently prevailing scenario of mills increasing cotton yarn prices will shake Tirupur garment export sector,” explains Sakthivel.

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“We are lagging behind in our global competitiveness as our major competitor China has also not increased yarn rate to this level. This will not only affect our performance but also consumption of yarn from the mills. If such scenario exists for long, we could lose our competitiveness and once lost, it would be difficult for India to regain it back,” the President emphasized.

It may be mentioned here that TEA members are already experiencing losses due to the depreciation of pound by 10 per cent after Britain opted out of European Union.