Finally some good news coming from Tiruppur in Tamil Nadu . The textile industry there is breathing a sigh of relief as cotton yarn prices have thankfully started dropping after months of non-stop increases.
And this big change is happening because government has taken one important step . They decided to temporarily exempt customs duties on all cotton imports from June to October,which should hopefully increase supply and calm down the domestic market.
Industry people are reporting that cotton yarn prices are already down by about ₹10 per kilogram across different counts . This is a direct result of raw cotton prices also seeing a big correction . The price for cotton has fallen to around ₹63,000 per candy,which is 356 kg,down from almost ₹69,000 before the government's announcement .
And tbh,this was so badly needed.
The Tiruppur knitwear cluster,which is one of our biggest textile export hubs,was getting hit very badly by this price rise . Just think,between January and May,yarn prices had shot up by nearly ₹65 to ₹70 per kilogram. This was making production costs skyrocket and making it hard to compete in international markets .
Few things are clear from this situation:
- The main trigger for this price drop is government's duty exemption on cotton imports .
- This relief in yarn prices is expected to help the entire textile value chain,from mills to exporters.
- Industry observers feel prices might soften even more if cotton imports increase in coming weeks.
This reduction is a huge help for manufacturers who were struggling with these rising input costs . It gives them some breathing room.
But everyone is calling this a temporary reprieve only . It's crucial development for sure,but it's not permanent solution ah.
Manufacturers are hopeful that this easing of prices will help them sustain their business and maybe improve their profit margins a little bit . But the global demand is still very uncertain .
So yes,it's good news for now . But you have to wonder what will happen after October when this exemption period is over… will we be right back in same situation…
