The decision to reduce the prices has been unanimously taken by the
representatives from the Confederation of Indian Textile Industry
(CITI), Apparel and Export Promotion Council (AEPC), Southern India
Mills Association SIMA), Tamil Nadu Spinning Mills Association (TASMA)
and Tirupur Exporters’ Association (TEA)..

An agreement had been signed, between Tirupur exporters and mill owners,
a couple of weeks ago pertaining to yarn price reduction by around 5
percent. The exporters demanded for further reduction in cotton yarn
prices, since the price shrink was not sufficient. .

The dramatic surge in cotton yarn prices, a few days before, has taken
its toll on the hosiery industry. For such an unprecedented growth in
cotton yarn prices against prices of cotton, the clothing producers are
considering mill owners responsible. More so, mill owners are also
attributing this price hike to the high power costs and manpower crunch..
The cost of 40’s count cotton yarn increased to Rs 200 a kg at the
beginning of this month. This price surge was considered as a result of
last month’s cotton price hike. The state shares 47 percent of the
country’s spinning capacity and contributes over 40 percent in the
Indian yarn exports