Tirupur Yarn Manufacturers Unite to Tackle Industry Challenges

Formation of the Tirupur Yarn Manufacturers Association

Chennai, July 14: In response to escalating production expenses and delayed payments, yarn producers in Tirupur district, Tamil Nadu, have established a new organization called the Tirupur Yarn Manufacturers Association. This initiative aims to rejuvenate the struggling sector and enhance profitability.

Tirupur, recognized as a significant textile center, hosts over 50 yarn mills that cater to the region's flourishing knitwear market.

Despite the rapid expansion of both domestic and international knitwear sectors, projected to reach Rs one lakh crore soon, yarn manufacturers are struggling to keep up due to rising operational hurdles.

Members of the newly formed association have expressed that the industry has faced ongoing pressure for the last five years.

One member stated, “We are contending with a mix of escalating cotton prices, increasing electricity costs, and delayed payments from clients. This has greatly affected our sustainability.”

The association reports that the cost of cotton, the main raw material for yarn, has increased by Rs 2,000 per candy (356 kg) in just the past ten days. Such erratic price changes have disrupted production planning and cost management.

A member remarked, “While downstream sectors are experiencing growth, we, as the backbone of the knitwear supply chain, are not progressing similarly. We cannot transfer the rising production costs to buyers, which is constraining our profit margins.”

The association has called on the Cotton Corporation of India to step in and implement measures to stabilize cotton prices, which they believe is crucial for maintaining the entire textile manufacturing framework.

The establishment of the Tirupur Yarn Manufacturers Association aims to create a consolidated platform to express concerns, interact with policymakers, and collaboratively seek solutions to the industry's challenges. Members are optimistic that through collective efforts, the sector can overcome the current crisis and regain stability.