Various factors including a ban on Chinese cotton by the US, a sudden surge garments orders, additional stocking up by brands and increased exports to Tirupur’s competitors including Vietnam and Bangladesh have led to yarn shortage for garments exporters. However, Tirupur Exporters Association (TEA) has alleged that mills were withholding yarn supplies impacting the export business. As per Raja M Shanmugam, President, Tirupur Exporters Association, the current decision of mills will certainly impact garment exports and lead to job losses.

However, mills have refuted these allegations. According to Prabhu Dhamodharan, Convenor, Indian Texpreneurs Federation (ITF), the current yarn shortage is mainly a result of sudden inventory buildup by companies across the value chain, both in exports and domestic markets in the textile sector. He views this a temporary phase and urges exporters not to panic on the availability.

P Nataraj, Managing Director, KPR Mills also advises exporters to stop diverting or hoarding cotton yarn.