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The Tirupur Exporters Association (TEA) has recently signed an agreement with spinning mills to supply yarn at reduced prices to apparel making units.
As per the agreement between TEA and mill people for reduction of cotton yarn prices for all the counts, the price of 40s-count yarn has come down by Rs 8 to Rs 194 per kg, while the prices of 20s, 24s, 30s and 34s count yarn have been reduced by Rs 5 to Rs 157, Rs 165, Rs 177 and Rs 184 per kg, respectively.
The agreement says the prices will prevail at the agreed levels till the end of August 2010 and it would be applicable to all mills.
TEA officials have sent a copy of the agreement to Dayanidhi Maran, union minister of textiles and the prices, it is learnt, would be made applicable throughout the country.
TEA official stated the talks between both segments of the textile industry has been going on for few months and now there is some kind of reprieve that too for a short period of time.
According to TEA, The increase in yarn prices will have an impact on the overall exports as the exporters are not able to pass on the burden to the customers.
Indian apparel exporters face severe competition in the international market especially from countries like Bangladesh, China, Indonesia, Cambodia and Vietnam.
TEA said that this is first time in the history of Tirupur, both mills and exporters associations have come forward and entered into an agreement.
09 June, 2010 by admin