Tirupur textile units ask spinning mills to resume cotton supply

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The textile units in Tirupur asked the spinning mills to immediately supply cotton, alleging that the latter had interrupted their supplies for no reason.

Raja M Shanmugham, president of the Tirupur Exporters Association (TEA) said the factories had stopped supplying cotton yarn and were not accepting new orders.

“They gave no reason, despite the fact that prices have increased by around Rs.50 per kg over the past six months,” said Shanmugham, who wrote to all textile mill associations, SIMA, TASMA and ITF to advise their members. provide continuous yarn to protect Tirupur’s knitwear export sector.

Shanmugham said the factories’ current move would certainly impact garment units, largely affecting exports and spurring job losses.

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He pointed out that due to the non-commitment on delivery schedules, foreign buyers will not only cancel orders, but also will not be ready to place future orders with exporting units. He also noted that if buyers leave the country, it will be very difficult to bring them back to a time when the domestic industry is at a competitive disadvantage, due to the lack of a level playing field.

The strong domestic market is permanent and once the dominant business ecosystem is disrupted, the future would be unpredictable, he said.

Tirupur Knitwear has recorded business worth Rs 50,000 crore in the last fiscal year.

In his letter to the Association, Shanmugham said that the rise in yarn prices over the past two months has followed the rise in cotton prices. The textile units bought the yarn despite the losses incurred on orders already placed and only in future orders would they be able to negotiate better prices for clothing from foreign buyers.

The clothing industry faces stiff competition in the global market and operates on very thin margins and in such a crisis situation, stopping the supply of yarn will be a blow to the industry, he said. -he adds.

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