Textile units hike yarn prices thrice in a month
Source: financialexpres Date: 2010-11-04
While the price of 20s count (term used to define size/weight of yarn usually reflecting the amount of yarn packed in a given area) yarn has gone up to Rs 191 per kg from Rs 184 per kg, 24s count has been increased to Rs 199 per kg /from Rs 192 per kg, 30s count to Rs 211 per kg, 34s to Rs 218 and 40s count yarn prices to Rs 225 per kg from Rs 218 per kg. This is the third hike in yarn prices within a month.
Textile mills had increased prices across all counts by Rs 7 per kg last on October 26, 2010 and prior to that on October 20, 2010.
In fact, in October alone, yarn prices have been thrice raised by Rs 7 per kg every time across all the counts. According to A Sakthivel president of Tirupur Exporters Association (TEA), the industry is shocked to note that textile mills have increased yarn prices by Rs 7 per kg for all counts on November 1 and the upward revision of yarn prices has been done at a time when cotton prices have just started to fall.
For instance,the count 40s combed hosiery yarn price which was quoted at Rs 185 per kg in June 2010 is now priced at Rs 225 per kg. There has been an increase of Rs 40 per kg within just four months. Similarly, in the case of count 30s the price has moved up from 171 per kg in June to the current level of Rs 211 per kg.
In the past one week, cotton prices have declined by almost Rs 2,000 per candy and in fact, there is no logic in revising the yarn prices upwards today, he added.
He said, since the last revision of prices by Rs 7 per kg on October 26, 2010, it is now apparent that the yarn scarcity which was being created last month was mainly to hoard and hike the prices.
The ever increasing price of yarn is crippling exporting units and the situation is now totally grim. The fact is every one is running out of solutions to sustain their business, he added.
