Hosiery yarn prices in Tirupur have risen by Rs 20 per kg across various counts in May, marking the second increase this month and taking the cumulative rise over the past five months to Rs 61 per kg.
Tirupur is India’s largest hub for knitwear exports and accounts for more than 68% of the country’s knitwear exports.
Hosiery yarn, a key raw material for knitwear manufacturing, has seen price fluctuations in recent months, largely in line with movements in cotton prices.
Industry stakeholders said the Union government had waived the 11% import duty on cotton from August to December last year, which helped keep prices stable.
However, after the exemption was withdrawn in December, imported cotton became costlier, leading to an increase of Rs 4,000 to Rs 5,500 per candy (One candy = 355.6 kg) in domestic cotton prices.
Following this, hosiery yarn prices rose by Rs 7 in February and remained steady until mid-March, when another increase by Rs 7 was announced.
Prices were then raised by Rs 10 each on April 1 and 16, followed by another Rs 7 hike on May 1. The latest increase by Rs 20, the second hike this month, has heightened concerns among the garment manufacturers.
G P Prasanna, a cotton and hosiery yarn trader in Tirupur, said the cumulative increase of Rs 61 in a short period was putting significant pressure on the garment producers.
Industry sources said the rise was also driven by global factors, including higher crude oil prices amid geopolitical tensions, which have pushed up viscose and polyester yarn costs.
Textile exporters from Tirupur had recently met Union ministers, seeking a waiver of cotton import duty and asking the Cotton Corporation of India to ensure adequate supply of cotton to mills.
“Against this backdrop, the latest increase in hosiery yarn prices is estimated to have pushed up garment manufacturing costs by 15% to 20%, industry sources said,” ToI reported.
After the latest revision, combed yarn prices range from Rs 244 per kg for 10s count to Rs 372 per kg for 40s count, while semi-combed yarn prices range from Rs 309 to Rs 362 per kg, depending on the count.
