Garment manufacturers and textile mills in Tiruppur have called on the Indian government to set a minimum floor price for yarn to curb volatile price hikes. They also seek export controls, a five‑year cotton import duty waiver, and priority cotton allocation from CCI.

  • Tiruppur garment cluster demands a minimum floor price for yarn
  • Exports allowed only if prices exceed the floor level
  • Five‑year cotton import duty waiver and priority CCI supply requested

The Joint Committee of Tiruppur Knitwear and Textile Cluster has formally urged the Union government to fix a minimum floor price (MFP) for cotton yarn. The demand emerged from a recent gathering of garment manufacturers and textile mill associations across Tamil Nadu, where participants highlighted the severe impact of repeated, steep yarn price spikes on their operations.

Background

Tiruppur, often dubbed India’s “Textile Hub,” accounts for a substantial share of the nation’s apparel exports. Over the past two years, cotton yarn prices have surged by more than 30%, squeezing margins for small and medium‑sized units and creating pricing uncertainty throughout the supply chain.

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Key Demands

The committee presented four core requests to the centre:

  • Permit yarn exports only when export prices are above the stipulated minimum floor price, ensuring domestic availability.
  • Waive cotton import duties for five years to lower raw‑material costs for mills.
  • Allocate cotton from the Cotton Corporation of India (CCI) to Tamil Nadu mills on a priority basis.
  • Enable the Tamil Nadu government to procure cotton directly from farmers and supply it to state mills, curbing speculative resale.

Why This Matters

BozokMedia analysis shows that stabilising yarn prices will not only protect profit margins of Tiruppur’s garment sector but also enhance India’s competitiveness in the global apparel market. A predictable cost structure can attract foreign investment and reduce reliance on volatile international cotton markets.

Financial analyst Dr. Ajay Singh notes, "A fixed floor price for yarn is essential for industry stability and will bolster India’s export competitiveness."
Did You Know?: Tiruppur alone exports roughly 1.5 million garments annually, representing over 15% of India’s total textile export volume.

Frequently Asked Questions

Q1: How often would yarn prices be revised under a minimum floor price?
A: The committee proposes setting the price monthly or bi‑monthly, rather than frequent ad‑hoc adjustments.

Q2: What benefit will small garment units gain from this policy?
A: Predictable yarn costs will improve budgeting and reduce financial risk for smaller manufacturers.