Hosiery companies jittery about high yarn prices
According to industry experts, the prices of cotton and yarn have risen by 30% and 50% approximately, thereby making hosiery makers concerned. They anticipate that the spinning mills will be increasing prices for April by Rs 10 per kg despite the government urging the industry not to raise prices. What has led to this situation is the fact that currently there is good demand from the export market and spinning mills are taking advantage of the demand-supply gap by focusing on exports.
“There has been a 50% rise in yarn prices and 30% rise in cotton prices. The rise in yarn prices is more than cotton. Therefore, until now, there has been a 10% increase in the prices of finished goods. The rise was originally meant to be over 17% but has not been increased to this extent due to market resistance. The association has written to the government seeking a cap on the price rise because if this continues, small players will not survive,” KB Agarwala, MD of Rupa & Company, and president of Kolkata-based Federation of Hosiery Manufacturers Association,” said.
Taking stock of this situation, the Apparel Export Promotion Council has urged the government to impose restrictions on exports of cotton yarn in order to curb prices and increase supply to domestic manufacturers.