The textile industry in Karur is facing challenges with a sharp rise in the price of cotton yarn and higher raw material costs due to geopolitical tension in West Asia.

According to industry sources, the textile manufacturers in Karur source cotton yarn from the mills in Coimbatore, Dindigul, Virudhunagar, and Vellakoil.

Textile manufacturers and exporters believe that the price rise is highly abnormal. There has been a strong mismatch between the demand and supply of thicker yarn over the last six weeks, triggering a sharp increase in prices of 30% to 40%. One kg of high-count yarn is quoted at Rs 400, up from Rs 300. 

Industry stakeholders in Karur noted that  the price of yarn used by the garment manufacturing units had come down to 3% to 4%. However, there was no change in the price of thicker yarn used by the textile manufacturers in Karur.

P. Gopalakrishnan, president, Karur Textile Manufacturers and Exporters Association stated that, “We do not understand the reason behind the increase in price of cotton yarn. Stable price of yarn, which is a key raw material in textile manufacturing, is necessary for the smooth sailing of the industry. The current increase in cotton yarn price is unprecedented. It has hit us very hard.”

He added that the issue had been taken to the notice of the Centre and State governments by the Southern India Mills Association and Tamil Nadu Spinning Mills Association seeking their intervention to stabilise the yarn prices.

Karur players further noted that the prices of many essential materials required for textile manufacturing including petroleum-based products such as polyester, chemicals used in dyeing industries, polythene, and packing materials  had witnessed sudden and steep increases.