Nearly 50 textile mills based out of Tiruppur have formed the Tiruppur Yarn Manufacturers Association, mainly to regulate the hosiery yarn transaction processes in the knitwear city.

According to the members of the executive committee of the recently-constituted industrial body, with close to 30 lakh spindles among them, they have an annual turnover of approximately ₹15,000 crore in total. However, the yarn manufacturers face several challenges, especially for the last five years.

The unstable prices of raw materials such as cotton and rising electricity costs in Tamil Nadu have led to a spike in production expenses. For instance, in just the last 10 days, the price of cotton has risen by ₹1,800 per candy (365 kg). But, the yarn cost does not support the production cost.

The Cotton Corporation of India should check the cotton prices. The cost of technology upgrades and machinery maintenance continues to rise. Under such circumstances, there is an urgent need to support and revive the textile mills. The association members will ensure that the yarn (20s to 60s count of combed, compact, melange and blended) required for both, domestic and international knitwear production, has quality consistency and is delivered at reasonable prices.

The association members have also decided to stop extended credit durations to the garment manufacturers and ensure that the customers pay for the yarn within the agreed period.