Exporters Urge Textile Mills to Continue Cotton Yarn Supply

Exporters Urge Textile Mills to Continue Cotton Yarn Supply

Tamil Nadu Industry Review Team

Expressing concern over the possibility of discontinuation of supply of cotton yarn, Tirupur Exporters Association (TEA) has urged the spinning mills to continue supply of cotton yarn as stoppage of supply would affect garment units. In a letter to the chairmen of three mills associations, TEA president Raja M Shanamugham said the garment sector is facing stiff competition in the global market and operating with wafer-thin margin. During this crisis, he said, the stoppage of yarn supply would hit the sector. He said TEA members have been purchasing yarn despite its rise in prices in the past two months because of the increase in cotton prices.    

The textile industry, including value-chain stakeholders, has been growing over the years in Tamil Nadu. Supply of international quality yarn by the mills has contributed to the growth of knitwear sector, both foreign and domestic markets. Tirupur knitwear business recorded Rs 50,000 crore in the last financial year and is poised to achieve Rs one lakh crore by 2024, with the help of the government and stakeholders.

It is noteworthy to mention here that the adoption of win-win situation has helped the growth of all sectors and more importantly, the industry is fulfilling the concept of ''Atma Nirbhar Bharath'' of Prime Minister Narendra Modi, he said. Raja Shanmugham, in the letter to South India Mills Association, Indian Texpreneurs Federation and Tamil Nadu Spinning Mills Association, said TEA was receiving calls from members stating the refusal of textile mills to take up orders and also stoppage of yarn supply.

The decision of mills would certainly impact the garment units, exports would be affected and more number of workers would be rendered jobless, he said. There is apprehension that due to non-commitment of delivery schedule, foreign buyers would not only cancel the orders but also would not be ready to place orders, he said. The strong domestic market is a permanent one and once the business eco-system prevailing at present is disturbed, then the future would be unpredictable, he said.

Considering the fact and gravity of the situation, TEA requests mills to continue supply of yarn without stoppage and help the growth of all sectors in the textile industry, Raja Shanmugham said. Though the mills have not yet stopped supplying yarn and due to increased order in garment sector, there could be a mismatch in demand-supply situation, the spinning mills sources said.

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