Garment manufacturers suggested that a tripartite group consisting of garment units, mills, and state government be formed to examine and set prices over a period of three months.
Tiruppur Exporters and Manufacturer Association (TEAMA) president M P Muthurathinam said, “Unstable cotton yarn prices are derailing deals of many garment units. While cotton prices change every day, the price of yarn rises every month.”
The cost of semi-combed and combed yarn has increased in all categories (counting 16s-40s) by Rs. 12 per kilogramme last month. It increased again this month by Rs. 5. Due to these variations, domestic clothing producers and exporters are unable to negotiate with their customers. It is therefore recommended that the prices are only fixed once every 3 months. He said that the State Textile Department will receive any proposal sent.
In the trade cycle, there are fluctuations in prices of yarn. In order to combat this, several producers have experimented with artificial fibres. S Govindappan, vice-president of South India Hosiery Manufacturers Association(SIHMA), said that a price fixing committee would prove beneficial.