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Textile mills in Tamil Nadu unable to manage rising raw material costs


Since the last 15 months, weavers, garment manufacturers, and textile mills in Tamil Nadu are finding it difficult to manage rising raw material costs.

The weavers and garment manufacturers are hit by high yarn prices and the textile mills. Garment units in Tiruppur downed shutters for two days – January 17 and 18 – demanding measures to control cotton and yarn prices. The Chief Minister also wrote to the Union government asking for the removal of the 10 per cent import duty on cotton, ban on cotton exports, and calibration of cotton yarn exports.

Raja M Shanmugham, President, Tiruppur Exporters’ Association, of the 2,000 exporters in the Tiruppur cluster, less than 10 per cent have textile mills. Shanmugham urged the government to reconsider the permission given for the export of cotton and said only excess yarn and fabric should be exported. Further, trading of cotton on commodity exchanges should be monitored, he said.

Ravi Sam, Chairman, Southern India Mills’ Association, the problem of price increase starts with the basic raw material – cotton. The association just wants the government to monitor cotton trading on the commodity exchanges and measures to ensure that prices are under control. Right now, large-scale traders, who are handling relatively less quantity of cotton, are increasing the prices.

There is an acute shortage of quality cotton and its prices are higher, too. With cotton production during the current season (October 2021 to September 2022) expected to be just about 350 lakh bales, and the domestic industry requirement estimated to be 340 lakh bales, there may be a crisis between July and October as the quality of cotton available now is poor.

The association reiterated its demand for immediate withdrawal of the import duty on cotton.


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