Raja M Shanmugham, President, Tirupur Exporters Association (TEA) has requested Southern India Mills’ Association, Tamil Nadu Spinning Mills Association and Indian Texpreneurs Federation to advise their members to supply yarn without stoppage. As per a CAI report, TEA members have seen an increase in cotton yarn prices in the past two months. The reason for the increase is the spiralling cotton prices and considering this, TEA members have also been purchasing yarn despite incurring the loses in the already committed orders. The garment sector operates on a wafer thin margin and in such a crisis situation, stopping of yarn supply may leave the sector in quagmire, said Shanmugham.

The mills’ decision will also impact the garment exports and cause more job loses. Moreover, foreign buyers will cancel not just current but also future orders, he added. If foreign buyers leave our country, it would be difficult to bring them back at a time when we are in a disadvantageous position in the competitiveness front, thanks to absence of a level playing field, added Shanmugham. He therefore, urged mills to continue supplying yarn to the industry and help all sectors of the all the textile industry grow.