Cotton yarn prices in Tiruppur have seen a significant decrease, providing relief to the knitwear and textile industry in Tamil Nadu. This decline comes after the Central government’s move to temporarily waive customs duty on cotton imports from June to October. Industry sources note a reduction of about Rs 10 per kilogram in cotton yarn prices, aligning with the overall drop in cotton prices.
The textile and apparel sector, which has been grappling with surging input costs since the start of the year, welcomes this development. Domestic cotton prices have also experienced a notable correction, now standing at around Rs 63,000 per candy compared to the previous Rs 69,000 per candy. This price adjustment has had an immediate positive impact on yarn rates, benefiting spinning mills, garment manufacturers, and exporters.
Tiruppur, a key textile and apparel export hub in India, had been facing challenges due to the continuous rise in cotton and yarn prices. The recent fall in cotton prices is seen as a positive turn for the industry, potentially easing production costs. Manufacturers anticipate a relief in pressure on production expenses, benefiting various segments of the textile value chain, including spinning and knitting units, garment exporters, and retailers.
Expectations are optimistic that the downward trend in cotton and yarn prices may persist in the upcoming weeks with a potential increase in cotton imports and enhanced market supplies. The industry sees this price correction as a temporary respite rather than a permanent solution, yet it is anticipated to offer crucial support to textile manufacturers and exporters amid tough market conditions and uncertain global demand.
