Hosiery yarn prices go up by 20 per kg in Tirupur second hike in May

Tirupur: Hosiery yarn prices in the district have gone up by Rs20 per kg across varieties in May, marking the second increase this month and taking the cumulative rise over the past five months to Rs61, industry sources said.Tirupur, one of India's largest hubs for readymade garment production and exports, accounts for more than 68% of the country's knitwear exports. Hosiery yarn, a key raw material for knitwear manufacturing, has seen price fluctuations in recent months, largely in line with movements in cotton prices. Industry stakeholders said the Union govt had waived the 11% import duty on cotton from Aug to Dec last year, which helped keep prices stable. However, after the exemption was withdrawn in Dec, imported cotton became costlier, leading to an increase of Rs4,000 to Rs5,500 per candy in domestic cotton prices. Following this, hosiery yarn prices rose by Rs7 in Feb and remained steady until mid-March, when another increase by Rs7 was announced. Prices were then raised by Rs10 each on April 1 and 16, followed by another Rs7 hike on May 1. The latest increase by Rs20, the second hike this month, has heightened concerns among the garment manufacturers. G P Prasanna, a cotton and hosiery yarn trader in Tirupur, said the cumulative increase of Rs61 in a short period was putting significant pressure on the garment producers. Industry sources said the rise was also driven by global factors, including higher crude oil prices amid geopolitical tensions, which have pushed up viscose and polyester yarn costs. Cotton prices, which were around Rs65,000 to Rs70,000 per candy earlier this year due to supply constraints, have further added to the pressure on yarn prices. Textile exporters from Tirupur had recently met Union ministers, seeking a waiver of cotton import duty and asking the Cotton Corporation of India to ensure adequate supply of cotton to mills. Against this backdrop, the latest increase in hosiery yarn prices is estimated to have pushed up garment manufacturing costs by 15% to 20%, industry sources said. Hosiery yarn is widely used in the manufacture of undergarments, vests and briefs. After the latest revision, combed yarn prices range from Rs244 per kg for 10s count to Rs372 per kg for 40s count, while semi-combed yarn prices range from Rs309 to Rs362 per kg, depending on the count.