Disturbing the garment industry, the price of different varieties of yarn has started climbing once again. The businessmen report triple increase from Rs 25 to Rs 100 for each kilogram. The manufacturers attribute it to an increase in production cost but rue being unable to revise the rates of end products.
Knitweat Club chairman Vinod Thapar said: “The industry has, therefore, decided to either cut down on production or put on hold the orders that it accepted when the yarn rates were lower. We request the authorities concerned to look into this unjustified rise in the price of yarn so that the exploitation of the manufacturers can end.”
Ludhiana MSME (micro, small, and medium enterprises) association president Harish Kairpal said: “The rates of different types of yarn have risen sharply over the last few months. The rate of woollen yarn shot up to Rs 550 a kg from Rs 500, while the price of PC-type yarn went up from Rs 250 to Rs 350. The cotton yarn worth Rs 400 has reached Rs 500, while commonly used polyster is now available for Rs 135 instead of Rs 110.”
This increase has jeopardised the local business of garment manufacturing, since it has wiped out the marginal profits on which the industry operates. Knitwear Club chairman Vinod Thapar said: “In the past two-three months, there has been uncontrollable rise in the rates of yarn. In some cases, the hike crossed Rs 100. Inspite of a higher input cost, we are not allowed to increase the cost of our end products, which is hitting our business.”