To overcome the fluctuation of yarn prices, garment manufacturers have suggested forming a tripartite committee comprising garment units, yarn mills and the State Government to review and fix prices for a three-month period.
Tiruppur Exporters and Manufacturer Association (TEAMA) president M P Muthurathinam said, “Unstable cotton yarn prices are derailing deals of many garment units. While cotton prices change every day, the price of yarn rises every month.”
In all categories (16s-40s count), the cost of combed and semi-combed yarn increased by Rs. 12 per kilogramme last month. Once more, it went up this month by Rs. 5. Domestic clothing producers and exporters cannot negotiate deals with customers due to this variation. Therefore, it is recommended that prices be fixed only once every three months. The state textile department will get the proposal that is being sent, he added.
The trade cycle includes fluctuations in yarn prices. Many producers have been experimenting with man-made fibres as a solution to this. A price fixation committee would be beneficial, said South India Hosiery Manufacturers Association (SIHMA) vice president S Govindappan.
