The Tirupur Exporters Association (TEA)
appealed spinning mills to not stop the supply of cotton yarns as its affecting
apparel manufacturing units. The mills
are not taking any new orders and have stopped production said Raja M Shanamugham, President, TEA in a
letter to leading mills’ associations.
Shanamugham also explained that the
apparel sector is functioning on thin margins and encounters tough competition
in the global market hence curtailing the supply of yarn would hit the sector
hard. He also said despite the rise in yarn and cotton prices in the last few
months, textile units have been buying yarn consistently. The decision to stall
production of yarn will affect the export orders of apparel manufacturers
gravely.
He further shared in the letter that
once manufacturers lose their buyer, it will become challenging to gain their
interest back, especially when for domestic players the competition in the
global market is stiff.