The garment units in Tirupur, widely referred to as the garment capital of South India, will down shutters from May 16 to 21 in protest against the hike in prices of cotton yarn.
The price of cotton yarn has increased by Rs 40 per kg after the Centre reduced the tariff on cotton.
The strike call was announced by the Tirupur garment owners association during a statement on Tuesday.
The garment units, mostly exporters, are worried that the hike in cotton yarn prices will adversely affect their business and, hence, as a mark of protest they'll stage the six-day protest. The annual turnover of the Tirupur apparel industry is around Rs 36,000 crore.
Tirupur garment owners association president, M.P. Muthuraman, while chatting with IANS, said, "The cotton mills increased the worth of yarn by Rs 50 per kilogram in November 2021, and also the yarn was sold at Rs 350 per kg. Now after the govt of India has reduced the duty of cotton, we were expecting prices of yarn to fall, instead, mills have increased it by Rs 40 per kg with which we cannot survive. we've no other option but to shut our units as a mark of protest."
Tiruppur Exporters Association (TEA) president, Raja Shanmugham while talking to IANS said, "We request the Union government to effect a ban on the export of cotton yarn till the worth stabilizes."
He said that there are possibilities of cotton being hoarded by traders in North India resulting in scarcity of product.
Tamil Nadu Spinning Mills Association (TNSMA) special advisor, Dr. K. Venkitachalam while chatting with IANS said, "The cotton traders in North India are hoarding the merchandise creating scarcity and hence mills are increasing the costs. There seems to be no effect on the removal primal duty of cotton by the govt of India."
He also said that when the removal great duty for cotton was announced, there was a direct drop by candyfloss prices, but now with less availability of spun sugar, the value has come up.
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