Hike in yarn rates worries manufacturers

Shivani Bhakoo

Tribune News Service

Ludhiana, December 26

The rates of yarn are increased up to 40-50 per cent in the last about one month, giving reason to manufacturers to be worried. For the season of entire summer, planning is done much in advance by the local manufacturers. And this is the time for their sampling on basis of which they will be given orders by the buyers. But the ever increasing rates of yarn has disturbed the planning of manufacturers, who feel if yarn rates come down or are increased further, it will become very difficult to convince the buyer and entire production depends on the cost of yarn/cloth.

Bobby Jindal, dealing in textiles has expressed worry. He said the prices of polyester thread have increased from Rs 80 to Rs 115, P/C increased from Rs 175 to Rs 235 and cotton has increased from Rs 200-Rs 250 per kilogram. “This is huge increase in the last about a month. The planning depends of cost of thread. If we give these rates to buyer, he will ask several questions on increase in prices. Keeping in mind one’s budget, production will depend on availability cloth because if prices are higher, people will cut-down on production and orders will be taken accordingly. On the other hand, once orders are taken, we can not increase production if rates come down,” said Jindal.

Another garment manufacturer Raghav Jain from Sunder Nagar said most of the manufacturers are waiting for rates to be stabilised. “We will be in losses if the rates are increased or decreased as we will not be able to plan wisely and orders will be taken accordingly. The government should form a committee to keep a check on cartel of yarn manufacturers, who increase the rates as per their whims and fancies,” said Jain.

It may be mentioned here that starting from January, the sampling of summers start and orders are taken from buyers. The production though starts little later but the entire process depends on availability and prices of yarn/cloth.