The Hindu : Front Page : Karur textile exporters in a quandary

Online edition of India's National Newspaper
Monday, Feb 04, 2008
ePaper | Mobile/PDA Version

Front Page

Front Page

Karur textile exporters in a quandary

L. Renganathan

Hank yarn price shoots up by 15 per cent; Central intervention sought

KARUR: Textile units in the district are in a fix due to the recent rise in the price of hank yarn. The hike has added to the woes of home textile exporters, who are already reeling under the pressure of rupee appreciation.

The price of hank yarn has shot up by about 15 per cent and exporters are irked by the fact that only those varieties that are popular in the district such as 10s and 2/17s and other coarse counts have had to bear the brunt.

They say there is absolutely no reason for the hike at this juncture. The demand among textile units for the yarn is usual for the time and there is no rush either. With a good harvest of cotton last season, there is no scarcity as well.

Karur Textile Manufacturer Exporters’ Association president V. Kumar and secretary P. Gopalakrishnan have sought the Centre’s intervention to save the exporters, who are under immense pressure in pricing their products in the global market courtesy the rupee appreciation in recent months.

They want the creation of a mechanism to help stabilise yarn prices and a dual exchange rate for the exporters to offset the dollar slide. They have sought exemption for their trade from all forms of service taxes and reduction in interest rates for pre- and post-shipment credits.

The Karur home textile exporters are planning to meet Union Finance Minister P. Chidambaram to press their demands.

Printer friendly page
Send this article to Friends by E-Mail

Front Page