Raja M Shanmugham, President said that the price increase to knitwear garments from buyers is desperately needed and need of the hour for Tirupur knitwear exports sector to sustain in the business and face the challenging business environment prevailing externally and internally in the past four months.
Further to Central Government announcement on increasing of minimum support price in the current year for the Cotton (Kappas) procured from the farmers lint (Ginned Cotton) prices have been increased from Rs. 36,016/Candy (355.54 Kgs) in August 2020 to Rs. 46,720/Candy in March 2021, and our Association has represented Ministry of Textiles to intervene for reduction of Cotton prices also.
Raja M Shanmugham said the increase in Cotton yarn prices, coupled with increase in accessories prices and dyeing charges have made the manufacturing of garments costlier and pointed out that the fabric cost for manufacturing garments was Rs. 384.16/Kg in the month of August 2020 has now (March 2021) gone up to Rs. 464.8/Kg, an increase of 21percent.
While talking on the Organic Cotton, he said the difference in Cotton yarn prices of regular Cotton yarn against Organic Cotton yarn was just Rs.10/Kg before November 2020 and whereas now the difference between them is almost Rs.120/Kg and selling at the premium rate. The fabric cost for manufacturing garments was Rs. 390.88/Kg in the month of August 2020 has now (March 2021) gone up to Rs. 566.72/Kg, an increase of 45 percent.
Raja M Shanmugham said in the case of Cotton and Spandex Yarn due to increase in prices of Spandex yarn, the fabric cost for manufacturing garments was Rs. 432.32/Kg in the month of August 2020 has now (March 2021) gone up to Rs. 546.56/Kg, an increase of 26 percent. He also mentioned that in the case of Organic Cotton and Spandex yarn, the fabric cost for manufacturing garments was Rs. 439.04/Kg in the month of August 2020 has now (March 2021) gone up to Rs. 648.48/Kg, an increase of 48 percent.
Raja M Shanmugham said that he has appealed to buyers to consider the overall increase in the prices of fabric, which has resulted into increase in cost of manufacturing of garments and requested to come forward to revise the prices of garments to witness a Win-Win situation at both sides.
