The Hindu Business Line : Yarn price hike seen inevitable

THE spiralling raw cotton price in recent weeks has cast financial burden on spinning units and it will inevitably result in the cotton yarn prices too going up, the South India Small Spinners Association (Sisspa) has said.

Contrary to the general perception that cotton prices would rule easy during the initial months of the new crop season i.e., between October and February, the current price spiral would upset the units, especially the financially weak ones in raw material planning, Sisspa has said in a statement .

Though the prices of some varieties of cotton yarn have gone up in tune with the cotton price hike, the sharp price rise of cotton will soon force spurt in the prices of all yarns.

But any increase in the prices of yarn will not benefit much the spinners who are faced with severe fiscal burden impacted by the levies from both Centre and the State Governments.

The spinners are to bear a cumulative duty burden of about 28 per cent besides the huge transport cost to move the raw materials as well as the finished products to and from their factories rendering their operations increasingly unviable.

The Sisspa President, Mr R. Chinniyan has said in this background, it will be imperative for various textile industrial associations and the weavers bodies to come together to protect the textile industry and seek suitable relief from the Government authorities.

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