Tiruppur yarn producers seek support from garment units to modify role of CCI

The Tirupur Yarn Manufacturers Association has urged garment units to collaborate in modifying the Cotton Corporation of India's (CCI) role to assist the textile industry. The China National Cotton Reserves Corporation possesses over a year's cotton stock, maintaining price stability. The association contends that CCI should procure cotton at Minimum Support Price, store stocks, and stabilize raw material prices for the industry.

During a meeting with AEPC chairman A. Sakthivel and TEA president K.M. Subramanian, they highlighted that garment buyers and brands often select specific ginners for cotton procurement, leaving spinning mills with restricted access to credit. Yarn manufacturing cost comprises 65%-70% cotton, and cotton prices have surged by 30% domestically and 50% internationally, leading to a corresponding increase in yarn prices.

Over 70% of spinning mills have not modernized due to sluggish yarn exports, with more than 20 million of the 45 million spindle working capacity being over a decade old. The association seeks the garment sector's support to eliminate the 11% import duty on cotton and alter CCI's role, emphasizing timely payments to spinning mills.