Chennai: A combination of factors — US ban on Chinese cotton, a sudden surge in orders for garments, further stocking up, increased exports to Tirupur’s competitors which includes Vietnam and Bangladesh — have resulted in yarn scarcity for garments exporters.

The problem is so grim for exporters that Tirupur Exporters Affiliation (TEA) has pressed the SOS button alleging that mills were being withholding yarn supplies impacting the export business. “The present decision of mills will definitely impact the garment models, exports will largely be afflicted and a lot more amount of staff will incur position losses,” TEA’s president Raja M Shanmugam wrote in the letter. “After the US imposed a ban on Chinese yarn, garment models from Vietnam and Bangladesh (competitors for Tirupur) have started off sourcing from Indian mills. We do not intellect a cost enhance, but non provide is producing a havoc,” he told TOI. The US administration has banned the utilization of cotton from China’s Xinjiang area, declaring the area works by using the compelled labour of detained Uighur Muslims.

Mills have turned down that they were being channelising yarn for exports. “Due to provide disruptions, businesses across the benefit chain, each in exports and domestic markets in the textile sector, started off creating inventory of apparels, property textiles , yarn and materials to control the business continuity. This sudden inventory build up is creating shortages,” explained Prabhu Dhamodharan, convenor, Indian Texpreneurs Federation (ITF). “This is only a temporary period and no need to have to panic on the availability.”

Yarn price ranges are rising. About the previous three months, a kilogram of cotton yarn has risen from Rs 205 to Rs 223. “Yarn cost enhance is not commensurate to cotton cost rise. The cost enhance in cotton is steeper. Prices have risen to Rs forty three,five hundred a candy (356 kg) from Rs 38,five hundred,” Dhamodharan explained. Exporters as well debunked TEA’s prices.

“There is no need to have to divert or hoard cotton yarn. There has been a sudden demand surge coupled with the point that creation has not arrived at pre-Covid stages. Numerous mills are working at 80% to eighty five% capability due to labour scarcity. Demand from customers is good, but price ranges haven’t operate absent,” explained P Nataraj, MD of KPR Mills, one particular of the major mills in the country.