The removal of import duty on cotton has encouraged many spinning mills in Tiruppur to place work orders in the US and Australia though few mills would prefer to monitor the price decline before placing their orders. MP Muthurathinam, President, Tiruppur Exporters and Manufacturer Association says, the decision may lead to drop in cotton yarn prices by Rs 10-20 a kg, encouraging garment mills to sign deals with foreign buyers.

N Thirukumaran, Managing Director, Ess Tee Exports explains, the Centre’s decision will help cool yarn prices and stabilize the cotton market. It would also enhance India’s competitiveness with other Asian countries, adds Velmurugan Shanmugham, Managing Director, Jayalakshmi Textiles. K Venkatachalam, Special Advisor, Tamil Nadu Spinning Mills Association (TNSMA) opines, the removal would help imports to stabilize cotton prices at around Rs 88,000 in a few weeks.