Tiruppur apparel exporters rally against rising yarn costs

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Tiruppur's garment manufacturing are facing severe operational squeeze as production costs increased 15 per cent due to escalating raw cotton and yarn prices. Local apparel exporters and textile mills have scheduled a high-stakes dialogue for September 9 to address margin pressures and stabilize supply chains. The crisis stems from international cotton rates rising from 70 cents to 93 cents alongside constrained domestic arrivals. Industry leaders warn, failure to reach a consensus on yarn pricing will jeopardize fulfillment schedules for upcoming festive orders.

Input costs have grown exponentially, yet downstream buyers resist upward price revisions, says M P Muthurathinam, President, Tiruppur Exporters and Manufacturers Association. Manufacturers point out, while spinning mills defend rates to offset raw material inflation, downstream fabric units are absorbing severe liquidity decline. Stakeholders are simultaneously lobbying with the central government to regulate international yarn exports to protect domestic availability. Without immediate policy intervention or localized pricing adjustments, regional export competitiveness risks severe disruption ahead of the peak trading season.

Tiruppur is India's preeminent knitwear manufacturing and export hub, generating billions in foreign exchange and supporting millions of direct and indirect jobs. Facing recurring raw material volatility, the sector targets steady annual volume increase by modernizing supply chains.