TN Garment Manufacturers Propose Tripartite Committee To Stabilize Yarn Prices

Tiruppur, Sept 20 (KNN) To overcome fluctuation of yarn price, garment manufacturers in Tamil Nadu have proposed the establishment of a tripartite committee, consisting of garment units, yarn mills, and the state government.

This committee would be responsible for periodically reviewing and setting yarn prices for a three-month duration, aiming to address fluctuations in yarn prices.

Speaking to TNIE, 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”

“The price of combed and semi-combed yarn in all categories (16s-40s count) increased by Rs 12 per kilogram last month. This month once again it increased by Rs 5. Because of such fluctuation, domestic garment units and exporters cannot fix deals with buyers. So we suggest that price should be fixed once in three months. We will be sending the proposal to the state textile department,” he said.

South India Hosiery Manufacturers Association (SIHMA) vice president S Govindappan said, “Yarn price fluctuation is part of the trade cycle. To overcome this, many manufacturers have started experimenting with man-made fibres. If there is a price fixation committee, it will be useful.”

Tamil Nadu Spinning Mills Association Special Adviser Dr Venkatachalam said, “Cotton ginning mills play a vital role in the value chain. But most of the mills are located in Telangana, Andhra Pradesh, Gujarat, and Maharashtra.”

“We have met these owners and their association to convince us of our views.

Apart from this, many feel cotton farmers must also be included in the committee,” he said.

An official from the textile department said, “This seems to be a good idea, but the department is yet to get any proposal from the stakeholder associations.”  (KNN Bureau)