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Cotton bale & yarn price hike threaten Karur textile manufacturers

2021-11-18 10:57:08
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Cotton bale & yarn price hike threaten Karur textile manufacturers

Rising prices of cotton bale have posed a huge threat to Karur textile manufacturing and export industries, which are gearing up for the Annual International Textile Fair/Expo, which is set to take place in January in Germany as majority of the trade depends on foreign orders received during the expo.

The cities of Tiruppur and Karur are known for textiles in Tamil Nadu. While the former is famous for garments, the latter is famous across the globe for household textiles and decorative items such as curtains, cushions, pillow cases, bedspreads, blankets, sofa pillows and table covers. Around 90 per cent of the products manufactured here are exported to foreign countries.

The drastic hike in the prices of cotton bale, in this scenario, has raised concerns among industrialists. With the international expo set to take place this January where Karur industries receive the majority of their orders, the price hike has worried them.

Karur Textile Manufacturing and Exporters Association member Dr Stiffen Babu said, "Frequent and drastic price hike of cotton bales has been strangulating manufacturers and exporters in Karur. The price of cotton bales has been hiked by 35 per cent in recent times. Cotton bale manufacturers, citing the cotton price hike, have been increasing the cost of bales and yarn frequently. But that is not true as cotton, which is sold for Rs 90,000 a 'boulder' (load) on the international market, costs only Rs 62,000 here. The government must intervene and put a cap on the price, fix a price for cotton bales for at least three months and stop exporting cotton and ales until the inflation comes to normal. The textile fair is set to take place from January 11 to 14 next year. Our trade got affected in the past two expos owing to the pandemic. This time we expect to receive orders worth around Rs 1,000 crore. But many are worried to take up foreign orders owing to cotton bale and yarn price. A 2/20 cotton yarn bundle weighing 5 kg used to cost only Rs 650 about four years ago. The price was hiked to Rs 1,100 about four months ago and now it costs Rs 1,650. Polyester cotton, which is used to stuff pillows and cushions, cost us Rs 90 a kg three months ago. It now costs Rs 125 a kg. So, it will be challenging for industrialists to take part in the expo and receive orders."

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