Rising cotton yarn price hit garment export, falling rupee offers no relief

Prices up by 8% in June and another hike is in the offing

The knitwear industry in Tirupur, which does business worth Rs 500 billion of which half is exports, has urged the mills not to increase cotton price further, as exporters are already struggling to survive. The falling rupee has given no respite to the industry as the price of yarn, its key raw material, has zoomed. Competing countries’ currencies also falling, taking away the low rupee advantage. 

Raja M Shanmugham, President, Tirupur Exporters Association, said cotton yarn price has risen by Rs 20 a kg this month to Rs 240 per kg for 40 count yarn. Going by strengthening cotton prices,