Can yarn manufacturers in TN revive a struggling sector amid rising costs?
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Synopsis
In a bold move to tackle rising production costs and delayed payments, yarn manufacturers in Tirupur, Tamil Nadu, have launched the Tirupur Yarn Manufacturers Association. This new body aims to revitalize the struggling sector and restore profitability. With over 50 mills in the region, the future of the textile industry hangs in the balance.
Key Takeaways
- Tirupur Yarn Manufacturers Association aims to unify the industry.
- Manufacturers face rising production costs and payment delays.
- Cotton prices have surged significantly over the past weeks.
- The association seeks intervention from the Cotton Corporation of India.
- Collaboration is key to overcoming current industry challenges.
Chennai, July 14 (NationPress) In response to escalating production costs and overdue payments, yarn producers in the Tirupur district of Tamil Nadu have united to establish the Tirupur Yarn Manufacturers Association. This initiative aims to rejuvenate the struggling sector and enhance profitability.
Tirupur, recognized as a prominent textile center, hosts over 50 yarn mills that cater to the region’s vibrant knitwear industry.
Despite the swift expansion of both domestic and international knitwear markets, projected to reach Rs one lakh crore soon, yarn manufacturers are facing challenges that hinder their progress.
Members of the newly formed association expressed that the industry has been under relentless pressure for the last five years.
“We are contending with a mix of rising cotton prices, escalating electricity costs, and delays in payments from clients. These issues have significantly affected our sustainability,” noted one member.
The association highlighted that the price of cotton, the essential raw material for yarn, has surged by Rs 2,000 per candy (356 kg) just in the last ten days. Such drastic and unpredictable price changes have disrupted production planning and costing.
“While downstream sectors are flourishing, we, as the backbone of the knitwear supply chain, are not progressing equivalently. We are unable to transfer the heightened production costs to buyers, which is tightening our profit margins,” another member remarked.
The association has called upon the Cotton Corporation of India to step in and implement measures to regulate and stabilize cotton prices, which they believe is critical for the sustainability of the entire textile manufacturing landscape.
The creation of the Tirupur Yarn Manufacturers Association aims to establish a cohesive platform to articulate concerns, engage with policymakers, and collaboratively pursue solutions to the challenges facing the industry. Members are optimistic that through coordinated efforts, the sector can overcome the current crisis and regain stability.
Point of View
It is essential that these manufacturers find viable solutions to stabilize operations and ensure their sustainability in a fluctuating market. This initiative reflects a proactive approach towards engaging with policymakers and advocating for industry needs.
NationPress
14/07/2025
Frequently Asked Questions
What is the Tirupur Yarn Manufacturers Association?
The Tirupur Yarn Manufacturers Association is a newly formed body aimed at addressing the challenges faced by yarn manufacturers in Tirupur, Tamil Nadu, particularly in response to rising production costs and delayed payments.
Why was the association formed?
The association was established to create a unified platform for yarn manufacturers to voice their concerns, engage with policymakers, and seek solutions to the ongoing issues affecting the industry.
What challenges are yarn manufacturers facing?
Yarn manufacturers are currently battling rising cotton prices, soaring electricity tariffs, and delayed payments from buyers, which have significantly impacted their viability and profitability.
How have cotton prices impacted the industry?
Cotton prices have surged dramatically, increasing by Rs 2,000 per candy in just ten days, causing production planning and costing to be thrown into disarray.
What do the manufacturers want from the Cotton Corporation of India?
The association has urged the Cotton Corporation of India to intervene and implement measures to regulate and stabilize cotton prices, which is essential for the sustainability of the entire textile manufacturing ecosystem.
