Prices of cotton and yarn have declined in the recent weeks, say SK Sunderaraman, Deputy Chairman and Ravi Chairman, Ravi Sam, Southern India Mills’ Association (SIMA).
According to them, yarn is currently being sold at a discount price of Rs 20 to Rs 25 a kg in Tiruppur. Despite this, mills have been able to sell only 50 per cent of the yarn produced. Most of the mills have reduced production.
Cotton prices have also fallen significantly. The spot price quoted for Shankar-6 variety of cotton has fallen to Rs 91,000 (approximately) compared to almost Rs 1 lakh a candy last month.
With the Union Government permitting duty free imports till September 30 cotton prices started declining. The mills have sought extension of the exemption till December 31.