Garment exporters face yarn shortage, prices shoot up, Retail News, ET Retail

Davida Erdahl

Chennai: A combination of factors — US ban on Chinese cotton, a sudden surge in orders for clothes, extra stocking up, enhanced exports to Tirupur’s competitors such as Vietnam and Bangladesh — have resulted in yarn shortage for clothes exporters.

The scenario is so grim for exporters that Tirupur Exporters Association (TEA) has pressed the SOS button alleging that mills had been withholding yarn supplies impacting the export business. “The current determination of mills will surely impact the garment units, exports will largely be impacted and far more number of personnel will incur position losses,” TEA’s president Raja M Shanmugam wrote in the letter. “After the US imposed a ban on Chinese yarn, garment units from Vietnam and Bangladesh (competitors for Tirupur) have started out sourcing from Indian mills. We do not head a rate enhance, but non offer is building a havoc,” he explained to TOI. The US administration

Read More