The Hindu Business Line : Textile bodies worried as yarn turns dearer

Coimbatore April 26 The Karur-based major textile trade bodies are meeting under a common forum on Friday to decide on industry-wide action against rising yarn prices.

The leading trade associations are meeting under the Karur Textile Forum to discuss the `work stoppage' earlier proposed by the local industry from May 2, in the wake of mounting yarn prices.

In tight spot

According to Mr Siva Kannan, Convener of the Karur Textile Forum, the surge in yarn prices in the last three months has put the handloom textile sector in a tight spot. Along with the spiralling yarn price and the increase in the lending rates being imposed by the banks, the unrelenting appreciation in rupee value has rendered textile exports from Karur unviable, causing concern to every sector in the home textile value chain in the town, he added.

Yarn prices

The prices of yarn, particularly the 2/30s, 2/20s and 10s count that are widely consumed by the home textile manufacturers in the region, had in the last three months registered a rise ranging from 15-20 per cent in the local market. In the backdrop of the spurting input costs, the end price of their products is expected to go up by 10-15 per cent in near term, the Karur textile trade said.

Among the leading textile bodies to attend the meeting to work out a consensus on launching the `production stoppage' from next month are Karur Weaving and Knitting Owners Association, Handloom Export Cloth Manufacturers Association, Karur District Dyeing and Bleaching Factory Owners Association and Karur Textile Manufacturer Exporters Association.

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