Yarn prices, which have been continuously rising since January 2026, shrank by Rs 10 per kg on June 1, post the centre’s temporary removal of import duty on cotton.
KM Subramanian, president of the Tiruppur Exporters’ Association (TEA), called this development a positive sign.
Subramanian said, “Due to the continuous rise in cotton prices in both international and domestic markets, prices of cotton yarn also continued to rise, leading to a crisis for the Tiruppur knitwear industry.”
On June 1, domestic price of a cotton candy of 356 kg fell to Rs 63,000. Prior to the centre’s announcement, it was Rs 69,000.
“As a result, cotton yarn prices also declined by Rs 10 per kg for all varieties on June 1. This will reduce input costs across the textile and apparel sector,” he added.
“From January to May, yarn prices had risen by Rs 65 to Rs 70 per kg and in February, cotton was traded at around Rs 54,000 per candy,” TNIE reported.
“This price reduction has been announced until June 15. Therefore, we expect the price of yarn to decrease even after that,” R Damodharan, secretary of the South India Hosiery Manufacturers Association (SIHMA), said.
Image courtesy: BaoDau
