Tiruppur Garment Units Schedule September 9 Meeting with Textile Mills Over Yarn Prices

Garment industry associations in Tiruppur are scheduled to convene a meeting with textile mill bodies on September 9 to address concerns regarding the continuous rise in cotton yarn rates. The planned discussions follow a preliminary gathering held on September 2 among local trade representatives who highlighted escalating raw material expenses and regional price differences.

What Happened

On September 2, delegates from nine Tiruppur-based trade bodies, including job workers, gathered in Tiruppur to evaluate the market conditions impacting apparel manufacturers. Following the meeting, the groups formed ‘The Joint Committee of Tiruppur Textile Cluster’ and sent invitations to four textile mill associations for a joint dialogue on September 9.

According to R. Dhamodharan, secretary of the South India Hosiery Manufacturers Association, the domestic garment sector is facing pressure from elevated yarn rates. Although the Central government previously lifted the import duty on raw cotton through October following joint appeals from mills and apparel makers, garment units report that the expected pricing benefits have not materialized for them.

Key Highlights

• Price Difference: Cotton yarn manufactured by mills in Tamil Nadu costs between ₹18 and ₹20 per kilogram more than yarn produced by mills in Gujarat.
• Local Supply Dependence: Tiruppur garment manufacturers and regional fabric producers primarily purchase their supplies from Tamil Nadu spinning mills, whereas Gujarat mills largely target overseas export markets.
• Material Comparisons: Cotton yarn remains higher in cost than polyester yarn, with Tamil Nadu cotton yarn commanding an even higher rate.
• Surge in Overseas Shipments: Indian spinning mills recorded a substantial rise in yarn exports during the first quarter. Shipments to China rose from ₹348 crore in the first quarter of the previous financial year to ₹1,668 crore during the same period this year. Shipments to Vietnam reached ₹500 crore this year compared to ₹263 crore in the April–June period of 2025.
• Impact on Competitiveness: Industry representatives noted that the steep diversion of supplies to export destinations has adversely affected the domestic garment industry’s competitiveness.

Why This Matters

Tiruppur’s garment manufacturers rely heavily on spinning mills located within Tamil Nadu for their day-to-day fabric manufacturing needs. Because Gujarat mills focus predominantly on export shipments, Tiruppur producers have limited access to alternative domestic yarn priced at lower rates. The disparity of ₹18 to ₹20 per kilogram, combined with broader cost pressures relative to synthetic substitutes like polyester, directly raises input expenses for apparel manufacturers. Furthermore, the sharp jump in cotton yarn exports to markets such as China and Vietnam limits domestic supply availability and impacts the overall competitive standing of Indian garment producers.

What to Watch Next

The Joint Committee of Tiruppur Textile Cluster plans to sit down directly with representatives of four textile mill associations on September 9. The objective of the dialogue is to negotiate practical solutions regarding yarn pricing and to formulate joint representations to be submitted to both the Central and State governments.

Frequently Asked Questions

Why are Tiruppur garment units meeting with textile mills?

The units are meeting textile mill associations to address the growing issue of high cotton yarn prices and find ways to resolve regional cost discrepancies.

How does the price of Tamil Nadu yarn compare with other states?

Cotton yarn produced in Tamil Nadu is ₹18 to ₹20 per kilogram higher than yarn produced by spinning mills in Gujarat.

Did the removal of import duty on cotton lower prices for garment units?

While the government removed the import duty on cotton until October following requests from the industry, garment makers state that the benefits of this relief have not reached them.

What trend has been observed in India’s cotton yarn exports?

Cotton yarn exports from India have increased significantly. Shipments to China climbed from ₹348 crore in the first quarter of the previous financial year to ₹1,668 crore this year, while shipments to Vietnam reached ₹500 crore compared to ₹263 crore in April–June 2025.

Source: The Hindu