Hosiery Yarn Prices Surge Again in Tiruppur as Cotton Becomes More Expensive
Tiruppur—the country's leading hub for knitwear and ready-made garments—has once again witnessed a sharp increase in hosiery yarn prices. In the month of May, prices for all categories of yarn have been hiked by up to ₹20 per kilogram. This marks the second price hike within the month of May alone. Driven by continuously rising prices, yarn rates have cumulatively increased by up to ₹61 per kilogram over the past five months, thereby rapidly escalating cost pressures on the textile and apparel industry.
According to industry sources, rising cotton prices and a global surge in raw material costs are the primary reasons behind this spike. Tiruppur contributes over 68 percent to the country's total knitwear exports, and hosiery yarn is considered the most critical raw material for knitwear production in this region. For several months now, the yarn market has been experiencing continuous volatility, which is having a direct impact on the cost of finished garments.
Industry experts note that the Central Government's decision to waive the 11 percent import duty on cotton between August and December of last year had brought temporary relief and stability to the domestic market. However, cotton prices subsequently began to rise again, leading to increased costs for mills and manufacturers.
In February of this year, hosiery yarn prices rose by ₹7 per kilogram. This was followed by another hike of ₹7 per kilogram in mid-March. In April, prices were raised in two phases—by ₹10 per kilogram each time—while on May 1st, another increase of ₹7 per kilogram was implemented. Now, the latest hike of ₹20 per kilogram has further heightened concerns within the industry.
According to experts, the surge in global crude oil prices—driven by geopolitical tensions—has also impacted the prices of viscose and polyester yarns. Cotton prices have currently reached a range of ₹65,000 to ₹70,000 per candy. Industry estimates suggest that recent price hikes could lead to a 15 to 20 percent increase in apparel manufacturing costs. Under the new rates, prices for combed yarn have risen from ₹244 to ₹372 per kilogram, while semi-combed yarn is trading between ₹309 and ₹362 per kilogram.
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