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KEA seeks cut in yarn prices

L. Renganathan

“Fluctuating price hits textile industry”


“Dayanidhi Maran should intervene in the issue positively keeping in mind the interests of lakhs of families”


KARUR: The Karur Exporters Association (KEA) has urged the Central and State Governments to intervene effectively and immediately to bring down the yarn prices and save the Karur-based home textile export industry from a certain disaster in the international market.

KEA chairman M. Nachimuthu and secretary P. Gopalakrishnan pointed out several factors that have derailed the home textile industry in the past few months making it less competitive in the international market by pushing up input costs. Important among them was the fluctuating yarn price, they observed.

Price of coarser varieties that are important for the home textile industry has shot up gradually over the past few weeks. The rates of yarn varieties such 2/20s, 2/30s, 10s, 2/6s, 2/10s and 6s have gone up by close to 20 per cent.

Those yarn varieties are manufactured from 80 per cent coarser cotton varieties and 20 per cent virgin varieties. The rise in the yarn prices was attributed mainly to export of raw coarse cotton and yarn to countries that give value addition to cotton and compete internationally with Indian textile exporters.

While after sustained demand from the exporters the Central Government banned export of raw cotton that helped rein in yarn price for some time, the sudden decision of the Centre to resume cotton export has stunned the textile exporters of Karur.

The Commerce Ministry has indicated that cotton exports would be allowed from October. That has pushed up the cotton price by Rs.1,500 per bundle of 356 kg. The apparel industry had bargained with the Textile Ministry to get a reduction of Rs.10 a kg for the yarn varieties they use.

The home textile export industry is now demanding the Union Textile Ministry for a similar incentive for it in terms of brokering a reduction in the price of yarn varieties they use the maximum. The Union Textile Minister Dayanidhi Maran should intervene in the issue positively keeping in mind the interests of lakhs of families involved in the chain processes, said Mr. Nachimuthu and Mr. Gopalakrishnan.

the Karur Exporters Association has urged the Centre and the State Governments to take immediate steps to reduce coarser varieties yarn price by at least 20 per cent, ban altogether export of waste cotton and coarser varieties yarn, create guidelines for the government to regulate the yarn price and provide subsidy for diesel used in power generators to tide over the power crisis.

Karur Textile Park Director M. Sivakkannan and KEA treasurer V. Viswanathan were among those present .

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