Coimbatore (PTI): The Tirupur Exporters Association on Thursday termed the increasing of yarn rates by Rs 5 by mill owners as 'unjustifiable' when the Centre conceded to their demands.
The Centre had on Wednesday scrapped duty on cotton imports, thereby removing the basic 10 per cent custom duty and a special 4 per cent additional duty, TEA President A Shaktivel said.
In addition, the Finance Ministry has also withdrawn the duty drawback benefit of 1 per cent on exports of raw cotton.
Consequent to this announcement, textile mills raised yarn rates today by Rs 5 for coarser counts in an unexpected way, Shaktivel added.
He added when yarn prices have been hiked by 25 per cent in the past two months, today's increase was unjustifiable and the beleaguered exporters were neither in a position to pass on the increased cost to buyers nor absorb it themselves.
Mills should reduce yarn rates considering this and follow a win-win approach for sustainability of value-added business, Shaktivel said.
If mills were not considering the genuine appeal for reduction in yarn rates, then garment exports would face difficulties attracting customers overseas as buyers would turn their attention to competing countries like China, Bangladesh, Pakistan, Vietnam and Cambodia, he added.
Mills association should advise their members not to increase yarn rates in the larger interest of the textile industry and the country's economy, Shaktivel said. |
online yarn MSN
Products 
