Yarn prices rise by ₹7 in May; up ₹41 in five months in Tirupur

Tirupur: Yarn prices in Tirupur have increased by ₹7 across all varieties for the current month, taking the cumulative rise to ₹41 over the past five months, industry sources said.Yarn, a key raw material in garment manufacturing, has witnessed frequent price fluctuations, largely linked to cotton prices. Industry stakeholders said that from August to Dec last year, the Centre had waived 11% import duty on cotton, which helped stabilise prices. However, with the withdrawal of the duty exemption in Dec, imported cotton became costlier, pushing domestic cotton prices by ₹4,000 to ₹5,500 per candy. Following this, yarn prices increased by ₹7 in February and remained stable until mid-March, when another ₹7 hike was announced. Prices were further raised by ₹10 on April 1 and again by ₹10 on April 16. The latest ₹7 hike in May has intensified concerns among manufacturers. G P Prasanna, a trader dealing in cotton and yarn in Tirupur, said the cumulative increase of ₹41 in a short span is significantly impacting garment producers. Industry sources attributed the rise partly to global factors, including increased crude oil prices linked to geopolitical tensions, which have driven up viscose and polyester yarn costs. However, S Jagadesh Chandran, honorary secretary of the South India Spinners' Association (SISPA), said yarn prices have not risen disproportionately compared to cotton prices, though synthetic fibre costs have increased. Following the latest hike, combed yarn prices range from ₹224 per kg for 10s count to ₹352 for 40s, while semi-combed yarn prices range from ₹289 to ₹342 per kg, depending on the count.